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Figure 5-4
In Figure 5-4, the rightward shift in budget lines from the one containing point A to the one containing point B
A. resulted from equal price reductions in beer and wine.
B. resulted from an increase in the consumer’s income.
C. could have been caused by income or price changes.
D. All of the responses are correct.
Answer: D
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A contract requiring payment of an annual premium in exchange for the payment of a future stream of payments beginning at a specified age and continuing until death is
A) whole life insurance. B) an annuity. C) term life insurance. D) variable life insurance. E) universal life insurance.
Banks help to overcome the problem of asymmetric information by: a. lending to a single rich borrower and not diversifying their portfolio. b. acquiring expertise in evaluating the credit histories of borrowers. c. threatening borrowers
d. offering only one type of loan. e. providing information to lenders.
Income lost by the unemployed is an example of the ________ cost of unemployment, while the additional spending to control crime is an example of the ________ cost of unemployment.
A. economic; psychological B. social; psychological C. economic; social D. psychological; economic
If the cash in an account falls below the maintenance margin, then a margin call is required to replenish the margin account to the maintenance margin account
a. true b. false