Advocates of an active policy associate a low cost with the passive approach so, they favor an active stabilization policy to stimulate aggregate demand
Indicate whether the statement is true or false
false
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Insurance companies can reduce risk by accepting premiums from
A) many people to insure against independent events. B) few people to insure against dependent events. C) few people to insure against independent events. D) many people to insure against dependent events.
Which of the following statements would make a reasonable hypothesis to test?
A) Deflation is worse than inflation in any economy. B) An unemployment rate below 4% is bad for the economy. C) As tax rates increase, eventually tax revenues will decline. D) Higher real GDP per capita figures lead to happier citizens.
If the government imposes a price ceiling that is lower than the market clearing price, then
A) consumer surplus will increase while producer surplus will decrease. B) consumer surplus will decrease while producer surplus will increase. C) both consumer surplus and producer surplus will decrease. D) both consumer surplus and producer surplus will increase.
For which type of organization is unlimited liability likely to be the greater problem-proprietorships or partnerships? Why?
What will be an ideal response?