Which is NOT a potential cost faced by nations that choose against repaying their debts?
A. A loss of foreign assets
B. Domestic recession
C. Moral hazard
D. A loss of future creditworthiness
Answer: C
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Refer to Figure 5-1. Marginal social benefit is represented by which curve?
A) Supply B) D1 C) D2 D) All of the above represent marginal social benefit.
Which of the following groups believes that by managing aggregate demand, government can achieve the most acceptable combination of unemployment and inflation?
a. classical school b. monetarists c. neo-Keynesian school d. rational expectations school e. supply-side school
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.
"Regulatory capture" refers to the situation where a government agency charged with supervising and regulating a particular industry is:
A. Strongly influenced by the firms in that industry B. Headed by bureaucrats who have a "lock" on their positions, without any rivals C. Completely dominating the actions of firms in the industry D. Headed by unelected government officials