If banks pay deposit insurance premiums to the Federal Deposit Insurance Corporation that are less than the amount that they would have to pay if the insurance were privately provided
what kind of behavioral problem might this cause on the part of banks?
It is likely to cause banks to be less careful with their depositors' money than they otherwise would be if the true cost of their risky loan-making were born by them rather than the government.
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Which of the following cases are examples of industries that have potentially increasing costs due to scarce inputs?
A) Petroleum production B) Medical care C) Legal services D) all of the above
When a firm sells its good abroad below the cost of producing the good the firm is
A) using the concept of comparative advantage. B) dumping. C) taking advantage of the infant industry argument. D) taking advantage of absolute advantage.
International capital flows in an open economy have the effect of
A. reducing the power of monetary policy. B. increasing the power of monetary policy. C. increasing the power of monetary policy in an expansion and reducing it in a contraction. D. reducing the power of monetary policy in an expansion and increasing it in a contraction.
Other things the same, another unit of capital will increase output by more in a poor country than in a rich country
a. True b. False Indicate whether the statement is true or false