If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect that
a. the demand for products in this industry would increase.
b. the market price of products in this industry would decrease in the short run but not in the long run.
c. the firms in the industry would make a long-run economic profit.
d. competition would force producers to pass the lower production costs on to consumers in the long run.
d
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Which of the following provides health-care coverage to people age 65 and over?
A) Medicaid B) Social Security C) Medicare D) Health-Aid
The goods market equilibrium condition in an open economy shows that
A) NX = Sd - Id. B) Sd = NX - Id. C) Sd = Id - NX. D) Sd = Id.
A service like CARFAX, which provides a used car buyer with the complete history of a used car, is profitable because of the problem of moral hazard
a. True b. False
A 10% increase in the price of pizza causes a 10% drop in the quantity of both pizza and beer sold. Describe elasticities and the nature of the two products.
a. The price elasticity of demand for pizza is equal to 1 and the cross price elasticity of beer with respect to the price of pizza is also 1. In this example, beer and pizza complements. b. The price elasticity of demand for pizza is equal to 1 and the cross price elasticity of beer with respect to the price of pizza is (-)1. In this example, beer and pizza complements. c. The price elasticity of demand for pizza is equal to (-)1 and the cross price elasticity of beer with respect to the price of pizza is 1. In this example, beer and pizza complements. d. The price elasticity of demand for pizza is equal to (-)1 and the cross price elasticity of beer with respect to the price of pizza is also (-)1. In this example, beer and pizza complements.