Consider Figure 12.3. David chooses to charge a low price:
A. only if Becky chooses a high price.
B. only if Becky chooses a low price.
C. regardless of whether Becky chooses a high or low price.
D. in order to induce Becky to choose a high price.
Answer: C
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When the Fed buys government securities in the open market, the money supply ________ because ________
A) decreases; banks lose liquidity, they make fewer loans and checking account deposits decrease B) increases; banks gain liquidity, they make more loans and checking account deposits increase C) increases; banks lose liquidity, they make more loans and checking account deposits increase D) decreases; banks gain liquidity, they make fewer loans and checking account deposits decrease E) none of the above
The regulatory lag:
A) always benefits the regulated firm. B) is likely to occur with rate-of-return regulation. C) promotes economic efficiency. D) all of the above
In a principal-agent relationship
a. the principal wants the agent to act on her own behalf b. the agent wants the principal to act on his behalf c. the principal wants the agent to act on the behalf of others d. the agent wants the principal to act on the behalf of others
The nature of health care delivery will be different in the future due to:
a. a rising percentage of elderly in the total population. b. cheaper alternatives to treatments in oncology. c. an expected increase in the fertility rate. d. longer inpatient hospital stays due to an decrease in acute illnesses among the elderly population. e. longer lives due to a lower incidence of chronic illness