Refer to Figure 7-5. With insurance and a third-party payer system, what is the amount of the deadweight loss?
A) $0 B) $2,500 C) $5,000 D) $24,000
C
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With the creation of the Federal Deposit Insurance Corporation, member banks of the Federal Reserve System ________ to purchase FDIC insurance for their depositors, while non-member commercial banks ________ to buy deposit insurance
A) could choose; were required B) could choose; were given the option C) were required, could choose D) were required; were required
Refer to Figure 11.2. Assume the economy is in equilibrium at 1, where real GDP equals potential GDP, and then the economy experiences a negative demand shock. Other things equal, the negative demand shock is best represented by a(n)
A) movement up along the Phillips curve. B) movement down along the Phillips curve. C) upward shift of the Phillips curve. D) downward shift of the Phillips curve.
Credit risks are based mainly on:
a. The maturity of an issue. b. The amount of national credit outstanding relative to GDP. c. The solvency, performance, and liquidity of borrowers. d. The degree to which market variables, like interest rates and exchange rates, change. e. None of the above.
A basic feature of the classical system of self-regulating markets was that
A. overproduction and unemployment would cause prices and wage rates to increase. B. flexible wages and prices would eliminate unemployment and overproduction. C. overproduction would never occur. D. an increase in saving would cause an increase in the interest rate and a decrease in investment spending.