Tag: Economics – Others

Suppose you and your friend decide to go to the beach during spring break. You need to fly from Kansas City to Mass and over 12 separate airlines provide the service. This market is best characterized as:
A. Monopolistic competition.
B. Monopoly.
C. Perfect competition.
D. Oligopoly.

of 1 pointQuestion 21 Nathalia listens intently as her economics professor describes the 4 percent unemployment rate in her county. Troubled by this statistic, she later talks with her friend Gigi, who is enrolled in a different section of the same economics course.

Question (2points)
Open Ebook section 18.1 ©1st attemptSee Hint
People with medical insurance are ◻ the quantity of visits to a doctor’s office they demand, compared to those without insurance.
Choose one:
A. more likely to increase
B. less likely to increase
C. unlikely to change

Consider the decision situation below where the dollar values are winnings with associated probabilities. Suppose Janice, who is risk-neutral, is facing the decision given here. See diagram in image attached. What is Janice’s expected utility at node A?
0.375
0.495
0.625
0.750
0.825
1

As it applies to insurance, the adverse selection problem is the tendency for:
sellers to price discriminate.
sellers to restrict output and charge high prices.
those who buy insurance to take less precaution in avoiding the insured risk.
those who hide information to buy insurance.

Macmillan Arista always spends 10% of her income on purses. Assume that her income increases by some percentage while the price of purses remains constant, and that all purses cost the same. What is her income elasticity of demand, Ea, for purses?
0
0.5
0.75

Suppose the Federal Reserve Banks sell $2 billion of government bonds to the public, which pays for them by drawing checks. As a result, commercial bankreserves will
increase by $10 billion.
remain unchanged.
decrease by $2 billion.
increase bu $2 billion.

If the price of capital decreases, the scale effect leads a firm to:
d) Decrease output and use more labor.
b) Decrease output and use less of all normal inputs.
a) Increase output and use more of all normal inputs.
c) Increase output and use less capital.

Which of the following is the best strategy to control wheat rust?A) Fungicides to treat affected crops and planting rust-resistant varietiesB) Insulation using green roofs to limit rustC) Citrus greening to prevent the spread of rustD) Invasive insect species to attack rust

An evaluation form includes collaboration and creativity as goals, but the bonus structure rewards only individual efficiency. What is the likely result?
Balanced performance
Decline in individual effort
Stronger group identity
Focus on measurable tasks
Increase in shared linnovation