The ECB would be unable to prevent a large banking crisis in the Eurozone because:
A) it can print money but is prohibited from lending to banks or central banks in the member states.
B) crises of such proportions would require an international effort.
C) deposits in banks in the Eurozone have FDIC insurance and are therefore out of the control of the ECB.
D) its assets are inadequate.
Ans: A) it can print money but is prohibited from lending to banks or central banks in the member states.
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When access to a common property is unrestricted, why does the resulting social gain fail to be as large as possible? How can an entrance fee increase social gain in this situation?
What will be an ideal response?
Usually an abundance of natural resources ________ average labor productivity.
A. has no effect on B. decreases C. increases D. doubles
If leisure is a normal good, then the income effect of a decrease in wage will
A) decrease the number of hours worked. B) increase the number of hours worked. C) decrease the number of leisure hours. D) increase the sum of leisure plus hours worked.
Which of the following is an example of moral hazard?
a. When a family's belongings are protected against theft and they take special care to look after the house. b. An individual buys a new auto insurance policy which includes a special payment if the car skids on the ice and the person then begins driving recklessly on ice. c. When a country expects assistance in the event of a currency crisis and therefore takes special care to avoid such a crisis. d. When decision-makers expect special assistance in the event of an unfavorable outcome and their behavior changes in such a way to avoid that outcome entirely. e. When a person with health insurance takes great care not to catch a serious cold.