If the short-run price elasticity of demand for hospital care is .27, then the long-run price elasticity is expected to be:
a. greater than .27.
b. greater than 1.
c. less than .27.
d. equal to .27.
e. less than 0.
a
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An increase in the domestic interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Hiring a sports celebrity to advertise a car dealership is a way of
A. screening those who aren’t willing to pay as much for a car. B. statistically discriminates potential buyers who like sports. C. signaling the quality of the cars because it is costly to hire that celebrity. D. a waste of the dealership’s money because celebrities aren’t car experts.
What is the function of a bank examiner?
(A) To make sure banks are obeying laws and regulations. (B) To carry on day-to-day functions within the bank. (C) To respond to banks about their daily reports to the Fed. (D) To oversee decisions about major loans by each bank.
In Figure 6.6 if price is P1, then the industry will:
A. expand. B. contract. C. stay the same size. D. merge.