Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
A likely reason for the difference in the slopes of the demand curves is that:
A. one market is in equilibrium and the other is not.
B. the over-the-counter pain reliever has many substitutes, but the new drug does not.
C. one drug is heavily regulated by the Food and Drug Administration and the other is not.
D. one drug is new on the market, but the other has been available for a long time.
Answer: B
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When we use the specificfactors model to study immigration, we assume that:
a. land is immobile internationally but capital and labor are internationally mobile. b. land and capital are immobile internationally but labor is internationally mobile. c. land, labor, and capital are internationally mobile. d. land, labor, and capital are internationally immobile.
When a bank's loans are written off, it means that the bank's:
A. Reserves are reduced, while its debt increases B. Reserves rise along with its debt C. Reserves fall along with its debt D. Reserves shrink, whereas its debt remains the same