Free ridership is associated with market failure, resulting in lower than efficient prices and higher than efficient quantities
Indicate whether the statement is true or false
F
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Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase health insurance?
A) the individual who is trying to purchase the policy B) the employer of the individual C) the health insurance company D) All parties in the health insurance market have access to the same amount of information.
If the money supply is $2 trillion and velocity is 5, then nominal GDP is
A) $1 trillion. B) $2 trillion. C) $5 trillion. D) $10 trillion.
If there is no output for which product price is sufficient to cover variable costs
A. the firm earns economic profits by staying open. B. the firm should increase production. C. the firm should stay open in the short-run. D. the firm should shut down in the short run.
If consumers cannot readily switch to a close substitute when the price of a good increases, the demand for that good is likely to be:
A. unit elastic. B. perfectly elastic. C. inelastic. D. elastic.