If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, then:
A. The price elasticity of supply is zero
B. The price elasticity of supply is infinite
C. The price elasticity of demand is unitary
D. The price elasticity of demand is zero
D. The price elasticity of demand is zero
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Suppose the Federal Reserve increases the money supply. Which of the following will tend to occur as a result of this policy in a Keynesian model?
A) an inflationary gap B) demand-pull inflation C) a movement along the short-run aggregate supply curve D) all of the above
At the utility maximizing level, the ratio of the marginal utility of apples to oranges is 3:2 . If the price of an apple is $6, then the price of an orange is _____
a. $6 b. $4 c. $9 d. $8
Which of the following factors is not part of an individual's stock of human capital?
A. Initiative B. Intelligence C. Years of education D. Employment status
Suppose a health insurance company notes that almost all of its customers are at a high risk of illness or injury. This is an example of:
A. public information. B. perfect information. C. a thick market. D. an adverse selection problem.