Deposit insurance and government's willingness to help distressed banks have virtually eliminated the potential for serious bank runs
a. True
b. False
Indicate whether the statement is true or false
True
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The basic purpose of economic models is to
a. construct simplifying assumptions about the real world b. explain reality in all its complexity c. collect empirical data to support the facts d. construct situations where controlled experiments can be carried out e. provide explanations for, and predictions of, economic events
Which of the following statements is true about investments in general and specific human capital?
a. Firms invest in development of general human capital of their employees. b. Employees invest in gaining specific human capital. c. Investment in general human capital of its employees by a firm may turn into a sunk cost if the employee leaves the organization to join another after completing the relevant training. d. When a firm invests in specific human capital of its employees, the employees become more attractive to other firms whose workplaces are operated and staffed differently.
Congressman A promises to vote for a bill that Congressmen B and C are sponsoring, and in return both B and C promise to vote for a future bill that A is sponsoring. This practice is called
A) cutting "red tape." B) chasing the median voter. C) rational ignorance. D) logrolling.
Based on this figure, if the krone exchange rate is fixed at $0.09 dollars per krone, the krone is:
A. devalued. B. undervalued. C. revalued. D. overvalued.