A problem with the too-big-to-fail policy is that it ________ the incentives for ________ by big banks
A) increases; moral hazard
B) decreases; moral hazard
C) decreases; adverse selection
D) increases; adverse selection
A
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Your boss asked you to research the purchasing habits of consumers near an underperforming store. You use your favorite search engine to look for information; however, you find nothing useful. All of these are possible reasons for this except _______________.
Fill in the blank(s) with the appropriate word(s).
In the long run, the economic profit of a firm in a perfectly competitive market
A) will be above zero. B) will be below zero. C) will equal zero. D) can be above, below, or equal to zero.
The downward sloping marginal revenue product of labor is
A) the firm's supply of labor. B) the firm's short-run demand for labor. C) the firm's marginal cost of labor. D) another term for the marginal revenue product of labor.
New classical economists contend that an unexpected increase in the money supply will:
a. increase the unemployment rate in the short run. b. reduce the unemployment rate in the short run. c. cause no short-run change in the unemployment rate. d. reduce the unemployment rate in the long run. e. increase the unemployment rate in the long run.