The more a nation depends on imported raw materials, the ________ closely linked is its marginal cost to its nominal aggregate demand, thus the ________ for the typical firm is a policy of indexing price to nominal aggregate demand
A) more, riskier
B) more, safer
C) less, riskier
D) less, safer
C
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A relative price is the product of two money prices
Indicate whether the statement is true or false
Which of the following is an example of a natural monopoly?
a. A local electricity supplier. b. A dry cleaner in New York City. c. An aircraft manufacturer. d. A pharmaceutical company that holds a patent on a new drug.
If the existence of health insurance increases one's incentive to use the health care system more intensively, this is an illustration of:
A. the adverse selection problem. B. the moral hazard problem. C. the benefits-received principle. D. the Coase theorem.
Related to the Economics in Practice on page 68: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint. This would cause the ________ of Baltimore newspapers to ________.
A. supply; increase B. supply; decrease C. quantity supplied; decrease D. quantity supplied; increase