An increase in bond prices is usually accompanied by
A. an increase in the opportunity cost of holding money.
B. an increase in the quantity demanded of money
C. a decrease in the quantity demanded of money.
D. an increase in interest rates.
Answer: B. an increase in the quantity demanded of money
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Assuming upward sloping labor supply, wage subsidies are definitely more inefficient
A. the more elastic labor demand is. B. the more elastic labor supply is. C. the more substitutable consumption and leisure are. D. Both (a) and (b) E. Both (b) and (c) F. Both (a) and (c) G. All of the above H. None of the above
Travel insurance (which pays a traveler if the traveler needs to cancel his or her trip) has a clause that states it will not pay if the trip is cancelled because of a pre-existing condition
If sick people are more likely to purchase travel insurance, this clause is meant to A) reduce moral hazard. B) reduce adverse selection. C) increase moral hazard. D) increase adverse selection.
Suppose the market demand curve for a Bertrand duopoly is downward sloping. What happens to the Nash equilibrium price and market quantity if the constant marginal cost declines?
A) Price and quantity decline B) Price increases and quantity declines C) Price decreases and quantity increases D) Price and quantity increase
Which of the following is true of an intermediate good? a. It is of no value to the seller
b. It is of no value to the buyer. c. It is purchased for household production. d. It helps produce another good. e. It is sold at a discounted price by firms.