Given the aggregate demand curve, an increase in the supply of a productive resource will:
a. increase output but leave prices unchanged
b. decrease both output and prices.
c. increase the price level and decrease output.
d. decrease the price level and increase output.
e. increase the price level but leave output unchanged.
d
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The Federal Trade Commission was created by Congress as an expert body to
A) help small businesses compete by offering technical advice and assistance. B) help small businesses compete by providing low-interest start-up loans. C) prevent insider trading. D) promote competition by preventing trade practices held to be unfair. E) regulate prices on spot and futures markets.
If the current mix of output is at point A and the optimal mix of output is at point D, does a market failure exist?
Municipalities that have adopted the policy of "rent control" typically set the rentals on certain apartments well below equilibrium. As a result,
A) landlords have a difficult time finding tenants. B) prospective tenants have a difficult time finding available apartments. C) there is a surplus of apartments. D) All of the above.
Fee-for-service insurance
A. requires you pay for services before they are performed. B. has more meddlesome bureaucrats than an HMO. C. is typically more expensive than an HMO covering the same illnesses. D. does not allow patients to pick their own doctor.