A major disruption in financial markets characterized by sharp declines in asset prices and firm failures is called a
A) financial crisis.
B) fiscal imbalance.
C) free-rider problem.
D) "lemons" problem.
A
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If the price of a cup of coffee increases by 50 percent, the quantity demanded decreases by 50 percent. The price elasticity of demand is:
A. elastic. B. inelastic. C. unit elastic. D. zero.
Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called
a. price discrimination. b. cost-shifting. c. categorical costing. d. reprehensible and unethical. e. creative accounting.
Which of the following could lead to a decline in aggregate supply in the U.S.?
a. The discovery of new mineral deposits in Arizona b. Higher real wage rates in the U.S. c. Lower personal income in France d. Cutbacks in government borrowing e. Rapid depreciation of the Swiss franc
A risk-averse individual would:
A. prefer a risky prospect with an expected value of $5 to a certain amount of $5. B. prefer $5 with certainty to a risky prospect with the expected value of $50. C. be indifferent between a risky prospect with an expect value of $5 and a certain amount of $5. D. prefer $5 with certainty to a risky prospect with the expected value of $5.