Which of the following statements best describes the relationship between price and quantity demanded for a given good or service?
a. A rise in price of a good or service almost always decreases the quantity demanded of that good or service.
b. A rise in price of a good or service always decreases the quantity demanded of that good or service.
c. A rise in price of a good or service almost always increases the quantity demanded of that good or service.
d. A rise in price of a good or service always increases the quantity demanded of that good or service.
a. A rise in price of a good or service almost always decreases the quantity demanded of that good or service.
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The real wage will rise if the nominal wage
A. increases more rapidly than the prices of the goods and services it buys. B. falls at the same rate as the general price level. C. falls more rapidly than the prices of the goods and services it buys. D. increases at the same rate as labor productivity.
An auto-insurance company introduces an anti-theft device that records how well the customer has secured his car. If the driver locks his car with the monitored lock every day, the rates go down. The company is trying to solve a __________problem
a. Adverse selection b. Moral hazard c. Forced bankruptcy d. None of the above
Which of the four types of decision makers in the U.S. economy plays the largest role?
a. U.S. firms and government because they produce the products that households consume b. U.S. households because they supply goods to the product markets and are demanders in resource markets c. foreign households, firms, and governments because they greatly outnumber those of the United States d. U.S. firms and government because they create employment for domestic households and produce goods and services e. U.S. households, as buyers in product markets and sellers in resource markets
One barrier to entry into a monopoly market is:
A. a natural monopoly. B. commonplace inputs. C. bulk buying. D. price gouging.