If the demand curve for a good always has unitary price elasticity, what does this imply about consumer behavior?
A) Consumers do not react to a price change.
B) Consumers will spend a constant total amount on the good.
C) Consumers are irrational.
D) Consumers do not obey the Law of Demand.
B
Economics
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A problem with the too-big-to-fail policy is that it ________ the incentives for ________ by big banks
A) increases; moral hazard B) decreases; moral hazard C) decreases; adverse selection D) increases; adverse selection
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Money payments made by governments to individuals for which no services or goods are concurrently rendered are known as
A) transfer payments. B) government-sponsored payments. C) government-inhibited payments. D) black market payments.
Economics