If the price elasticity of demand is less than 1, then consumer demand is
A) unrelated to the elasticity of demand.
B) inelastic.
C) elastic.
D) unitary elastic.
Answer: B
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An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
Economic rent is that portion of a resource's total earnings that exceeds its opportunity cost
a. True b. False
Which of the following is a statement of positive economics? a. Unemployment is a more severe problem in societies than inflation
b. Our current unemployment rate is a serious problem. c. If the overall unemployment rate is 6 percent, teenage unemployment rates will exceed 12 percent. d. An unemployment rate of 4 percent would be too low.
Inflation favors
A. lenders. B. borrowers. C. neither borrowers nor lenders. D. both borrowers and lenders.