If the unemployment rate has reached an all-time high, the production of output is probably

When bad drivers line up to purchase collision insurance, automobile insurers are subject to the

A) moral hazard problem. B) adverse selection problem. C) assigned risk problem. D) ill queue problem.

Suppose the own price elasticity of demand for good X is ?0.25, and the quantity of good X increases by 5 percent. What would you expect to happen to the total expenditures on good X?

A. Remain unchanged B. Decrease C. Increase D. Neither increase, decrease nor remain unchanged