If the government legalizes the purchase and sale of marijuana, the equilibrium quantity would then _________ and the price would then ________ if the supply of marijuana increased by _______ than the demand for marijuana increased
A) fall; fall; more
B) fall; rise; more
C) rise; fall; more
D) rise; fall; less
E) fall; fall; less
C
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Which of the following is not related to adverse selection in insurance markets?
a. An insurance company has no way of distinguishing among applicants b. An insurance company must charge a higher price to applicants who are good health risks c. The price of insurance is attractive to poor health risks, but not to good ones d. The insured group becomes less healthy on average e. Because of the relative unhealthiness of the insured group, rates must rise
If a monopolist is producing a rate of output at which market demand is inelastic,
a. it may or may not be maximizing its short-run profit b. reducing output would reduce both total revenue and total cost c. reducing output would increase both total revenue and total cost d. reducing output would increase total revenue and reduce total cost e. increasing output will increase its short-run economic profit
The ______________ rate of unemployment includes frictional and structural unemployment.
a. natural b. complete c. future d. framed
Economists must actually measure the utilities of goods to determine demand
Indicate whether the statement is true or false