Which of the following statements is false?
A) Government can remove individuals from a prisoner's dilemma setting and make both participants better off.
B) Government can define and enforce the property rights that individuals actually want defined and enforced.
C) Individuals in a prisoner's dilemma setting may want to get out of the prisoner's dilemma setting.
D) none of the above
D
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The Federal Reserve System is the central bank of the United States
Indicate whether the statement is true or false
The exchange rate can be very volatile, yet the quantity of dollars traded might not change much because
A) the Fed is constantly intervening by buying and selling dollars. B) there is only limited quantity of dollars in the foreign exchange market. C) supply of dollars and the demand for dollars often change in opposite directions. D) supply of dollars and the demand for dollars often change in the same directions. E) both the demand curve for dollars and the supply curve of dollars are horizontal.
Traditionally, the federal government provides disaster relief funds to flood victims so that they can rebuild their homes after a major flood
However, the government has recently denied requests to rebuild some homes that were situated in flood-prone areas. This action represents an attempt to ________ the moral hazard problem associated with building private homes in risky areas. A) enhance B) mitigate C) legalize D) support
One lesson of the Great Depression was that potential GDP could _____
a. be too low to ensure full employment if the population was growing b. be too low to ensure full employment in a capitalist economy c. be too low to ensure full employment in a market economy d. fall short of full-employment GDP e. exceed equilibrium GDP