Government attempts to lower, raise, or simply stabilize prices can:
A. shift the distribution of surplus.
B. create unintended side effects.
C. reduce efficiency of a market.
D. All of these are true.
D. All of these are true.
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A premium death spiral occurs when healthy people leave an insurance pool, which causes premiums to increase, and that causes more people to leave the pool, which results in even higher premiums
Indicate whether the statement is true or false
The most severe recession since WWII was in
A. 1973-1975. B. 1981-1982. C. 2007-2008. D. 1991-2001.
The nondiscriminating monopolist's demand curve:
A. is perfectly elastic. B. coincides with its marginal revenue curve. C. is less elastic than a purely competitive firm's demand curve. D. is perfectly inelastic.
Firms may react to a payroll tax by
A. hiring more labor. B. reducing their output. C. shifting to less capital intensive techniques. D. substituting labor for capital.