Individuals cannot buy unemployment insurance for themselves. The most likely reason for this is
A. moral hazard.
B. imperfect information.
C. a culture of poverty.
D. the free-rider problem.
Answer: A
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Which of the following statements is TRUE about income and wealth?
A) Income is a flow measure and wealth is a stock measure. B) Income is a stock measure and wealth is a flow measure. C) Both income and wealth are flow measures. D) Both income and wealth are stock measures.
Inflation rates over the last 40 years have generally:
A. decreased around the world. B. increased around the world. C. unchanged for developing nations and decreased for developed nations. D. decreased for developing nations and increased for developed nations.
Suppose a liquidity trap situation exists. Which of the following is most likely to occur if taxes are cut?
A) no change in output and no change in the interest rate B) an increase in output and an increase in the interest rate C) an increase in output and little change in the interest rate D) an increase in output and a reduction in the interest rate E) none of the above
A firm can be the only firm in an industry and still not be a monopoly if
A) the firm is not large. B) the firm is not making economic profits. C) the firm produces a good similar to a good in another industry. D) the firm produces a good that is not considered a necessity.