As opposed to general equilibrium analysis, partial equilibrium analysis looks
A) at an equilibrium and changes to it in a single, isolated market.
B) at how changes in all other markets effect a particular market.
C) at how equilibrium is determined in all markets simultaneously.
D) at either price or quantity movements.
A
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In the United States, globalization has caused the demand for unskilled labor to ________ and the demand for skilled labor to ________
A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
Typically, the lower the level of income per person in a country, the lower the level of spending per person on health care. This relationship between income and spending indicates that health care is a
A) luxury. B) inferior good. C) necessity. D) normal good.
When an investor buys a corporate bond
A) the face value of the bond is equal to what the investor paid for the bond. B) the investor becomes part owner of the corporation. C) the principal of the bond is a loan to the corporation. D) the interest made on the bond represents the bondholder's limited liability in the company.
The classical model uses the assumption that
A. all wages and prices are flexible. B. economic markets are fragile and have no tendency to move towards an equilibrium. C. interest rates are not flexible. D. monopoly is widespread in the economy.