Perfectly inelastic demand curves are vertical
a. True
b. False
Indicate whether the statement is true or false
True
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Explain how the "euro crisis" could potentially affect the following:
1.Exports from the United States 2. Supply chains of U.S. manufacturers. 3. U.S. banks
The Bretton Woods system worked fairly well for a number of years, but it finally broke down over
a. lack of agreement on how to settle the problems of the surplus nations. b. its inability to devalue the U.S. dollar. c. the huge debts of the IMF to less-developed countries. d. the controversies generated by surplus nations wanting to devalue their currencies.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
If Tom drives a car more recklessly after he purchases a comprehensive insurance plan, the change in his behavior is an adverse selection problem.
Answer the following statement true (T) or false (F)