Adverse selection arises in the health insurance market because ________
A) buyers have private information
B) sellers have private information
C) different firms provide different insurance schemes
D) the number of buyers and sellers is large
A
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If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest?
A) -9.5% B) -3.5% C) 1.5% D) 3.5% E) 9.5%
Which of the following is a stock variable? The number of
A. unemployed people. B. job losers. C. job leavers. D. reentrants.
If the required reserve ratio is 100 percent, could the Federal Reserve still change the money supply with open market operations? Explain whether they could or could not
What will be an ideal response?
Refer to the graph shown.
Assuming a consumer has $5 to spend, if a soda costs $0.50 and a chocolate bar costs $0.50, the consumer will optimally choose to consume:
A. at point B. B. 10 cans of soda and 0 chocolate bars. C. at point A. D. 0 cans of soda and 10 chocolate bars.