Answer the following questions true (T) or false (F)
1. In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price.
2. Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection.
3. Adverse selection is a situation in which one party to an economic transaction has less information than the other party.
1. TRUE
2. FALSE
3. FALSE
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In the recent Global Economic Crisis, all of the following are causes that pushed the IS curve to the left EXCEPT
A) the negative wealth effect from the collapse of the housing bubble. B) the end of cash-out mortgage refinancing. C) growing unwillingness of banks and nonbank financial institutions to grant loan. D) slow and minimal response of the U.S. government.
From the early 1860s to the early 1900s, the amount of land acquired by sales (including from railroads and states) was _____ land obtained free through homesteading
a. roughly half as much as b. about the same as c. twice as much as d. triple the amount of
Write an essay discussing some of the reasons that federal expenditures for Social Security have increased since 1965.
What will be an ideal response?
Identify the basis on which you measure the liquidity of an asset.
A. Its value. B. Its future earning potential. C. Its convertibility into cash. D. Its ability to act as a perfect store of value.