The general message of the full disclosure principle is that
A. the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one.
B. producers should offer lifetime warranties for low quality products.
C. information is costly to fake.
D. information is symmetric.
Answer: A
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Keynesian economics:
a. affirms the classical economists' basic premise concerning competitive markets. b. believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downwardly. c. emphasizes the possibility that an economy can never be in equilibrium at less than full employment. d. prefers to emphasize aggregate supply over aggregate demand. e. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP.
Which of the following is a component of the Patient Protection and Affordable Care Act?
a. Charging a fine to individuals who do not have or want health insurance b. Requiring employers to buy health insurance from state-run exchanges c. Requiring employers with 30 or more employees to offer health insurance d. Charging a fine to doctors who do not participate in health insurance exchanges
Over the past two centuries, the average annual rates of return were about
a. 5 percent for stocks and about 1.5 percent for short-term government bonds. b. 6 percent for stocks and about 2.5 percent for short-term government bonds. c. 8 percent for stocks and about 3 percent for short-term government bonds. d. None of the above is correct.
Free trade is beneficial because it:
A) reduces competition. B) leads to less use of the world's resources. C) results in a wider array of consumer products. D) leads to the production of free goods.