An example of the moral hazard problem in international investment would be that
A. those seeking the funds are dishonest.
B. those seeking funds for the riskiest projects are amongst those most actively seeking the funds.
C. government officials may demand higher than the usual amount of bribes.
D. the recipients of the funds may use the funds for riskier projects than the approved project.
Answer: D
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American consumers decide to boycott grapes in support of the farm workers' union. Everything else being equal, the
a. price of grapes will rise. b. supply of grapes will fall. c. quantity supplied of grapes will fall. d. demand curve for grapes will shift to the right.
Which of the following is true about fiscal policy?
What will be an ideal response?
Which of the following is not a source of productivity gain?
A. An increase in population. B. An increase in the ratio of capital to labor. C. Development of better capital equipment and products. D. Better use of resources in the production process.
The standard deduction depends on
A. family size. B. how money is spent (e.g. on state and local taxes or home mortgage interest). C. how much money is saved. D. family structure (i.e. filing status).