If the current price is less than the market clearing or equilibrium price, we would expect:
A) a surplus.
B) downward pressure on price.
C) upward pressure on price.
D) no change in the market price.
Ans: C) upward pressure on price.
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Once the national health care program goes into effect, we can expect
A) total expenditures on health care will decrease. B) more individuals will have more incentives to make decisions that promote better health. C) total expenditures on health care will increase. D) moral hazard will decrease.
Potential solutions to sell a high-quality used car include
a. offering a warranty b. selling through a reputable dealer c. documenting the complete repair history d. all of the above
"The economic wealth of this country is primarily the result of the profit made by some individuals at the expense of others." The person who made this statement
a. has failed to comprehend that mutual gains result from specialization and exchange. b. has failed to comprehend the fallacy of composition. c. has failed to understand the significance of the production possibilities constraint. d. has utilized the economic way of thinking; the statement is essentially correct.
Which of the following groups had the highest median income in the U.S. in 2008?
A. Hispanic B. White (non-Hispanic) C. Asian D. Black