If your income goes up by 2% and, in response, the quantity demanded of good x falls by 3%, the good x can be considered
a. An inferior good
b. A normal good
c. A public good
d. A private good
a
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You have just been named President and Chief Executive Officer at the StrideRite Shoe Corporation. This appointment places you in the role of ________ to lower managers and ________ to the stockholders
A) principal; principal B) principal; agent C) agent; principal D) agent; agent
When a country has a current account deficit, the country
A) is borrowing from abroad. B) is lending abroad. C) must have a government budget surplus. D) must have a government budget deficit.
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
For many years, dairy farmers would milk their cows and bring the milk to market. After buyers and sellers negotiated all sales, the farmers dumped large quantities of milk into rivers. What does it tell us about that milk market? A free market would not have created an ______, so that in this case there must have been a _________
a. opportunity to dump milk; special permit b. excess supply; price floor c. excess demand; price floor d. excess supply; price ceiling e. excess demand; price ceiling