An increase in demand for oil, along with a simultaneous increase in supply of oil, will
A. increase price, but whether it increases quantity depends on how much each curve shifts.
B. increase quantity, but whether it increases price depends on how much each curve shifts.
C. increase price and decrease quantity.
D. decrease price and increase quantity.
Answer: B
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An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
When the Fed purchases government securities from a commercial bank, the bank: a. automatically becomes poorer
b. loses equity in the Fed. c. receives reserves that can be used to make additional loans. d. loses its ability to make loans.
Balance of payments refers to the balance between the imports and exports of goods and services during the same time period
a. True b. False Indicate whether the statement is true or false
What does marginal cost equal?
a. total output divided by the change in total cost b. total cost divided by quantity of output produced c. the change of total cost divided by the change of output d. average cost divided by output