Health care:
A. is an inferior good.
B. is a normal good.
C. is highly elastic with respect to price.
D. has a price elasticity of demand of 1.
Answer: B
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A good proxy for the flow of consumption services would be
A) aggregate consumption. B) consumption of services and consumption of durables. C) consumption of durables and consumption of nondurables. D) consumption of nondurables and consumption of services.
The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, compared to a perfectly competitive market, the change in consumer surplus is
A) A. B) A + B + C. C) A + B + C + D + E. D) zero.
Unequal incomes can arise from: a. discrimination
b. worker preferences. c. differences in educational backgrounds. d. all of the above.
Assuming that the demand and supply of a good both increased by the same amount, the new equilibrium would represent: a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged. c. a decrease in price and a decrease in quantity exchanged. d. no change in price, and an indeterminate change in quantity exchanged.