The consumption of a club good like cable television:
a. is nonexcludable and nonrivalrous.
b. is excludable and rivalrous
c. is excludable and nonrivalrous.
d. is nonexcludable and rivalrous.
e. gives rise to the free rider problem.
c
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The outlet substitution bias is most likely to put ________ and so ________ the inflation rate
A) a downward bias into the CPI; overstate B) no bias into the CPI because it is such a small effect; have no effect on C) a downward bias into the CPI; understate D) an upward bias into the CPI; overstate E) an upward bias into the CPI; understate
Which type of unemployment is likely to decrease the most during an economy's boom?
a. Frictional unemployment b. Seasonal unemployment c. Structural unemployment d. Cyclical unemployment e. Underemployment
Which of the following is an effect of an increase in the price level in an economy?
What will be an ideal response?
Figure 14.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. If the insurance companies are pessimistic and set their price according to their pessimistic expectations:
A. the companies' pessimism is not justified. B. the market will include some low-cost and some high-cost customers. C. the market will include only low-cost customers. D. the market will include only high-cost customers.