Which product is most likely to be the most price elastic?
A. Milk
B. Housing
C. Clothing
D. Automobiles
D. Automobiles
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
What are the conditions for price discrimination?
Poverty and inequality in the U.S. are well below the OECD average
a. True b. False Indicate whether the statement is true or false
Which of the following is not an example of an adverse selection problem?
a. A homeowner purchases a refrigerator that the seller knows has a history of leaking. b. A highly productive worker quits her job after a salary cut knowing that she can make more at a different job. c. A major league baseball player performs poorly in his second season after signing a multi-million dollar contract. d. A contractor uses low quality materials for construction but charges for higher quality materials.