If the price elasticity of supply is 1.2, and price increased by 5%, quantity supplied would
a. increase by 4.2%.
b. increase by 6%.
c. decrease by 4.2%.
d. decrease by 6%.
b
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When yield curves are steeply upward sloping
A) long-term interest rates are above short-term interest rates. B) short-term interest rates are above long-term interest rates. C) short-term interest rates are about the same as long-term interest rates. D) medium-term interest rates are above both short-term and long-term interest rates.
The way income is allocated among the population is called the
A) income curve. B) income spread. C) distribution of income. D) Gini allocation.
Deciding not to buy any junk food at the grocery store while shopping for the week is:
A. an example of removing temptation in an effort to match present-oriented decisions more closely to future-oriented ones. B. an example of how individuals may compensate for the time inconsistency of their actions. C. an example of a tool people can use in order to enact the actions they say they want to make, but have a hard time making. D. All of these are true.
Fuchs (1988) static model of cost savings provides little encouragement for the prospects of savings in medical care. He concludes our best chance for controlling costs may be
a. to limit input prices. b. to improve efficiency in the production of medical care. c. to reduce medical care utilization. d. to increase the use of low-priced inputs and reduce the use of high-priced inputs. e. all of the above are necessary according to Fuchs.