If the quantity of goods and services produced in the economy decreases,
A) real GDP would certainly increase. B) nominal GDP would certainly increase.
C) it may be possible for nominal GDP to increase. D) it may be possible for real GDP to increase.
C
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One way of reducing the moral hazard problem in the automobile insurance market is for drivers to
A) carry high deductibles. B) carry no deductibles. C) all have good driving records. D) never make any claims.
The fastest growing productivity increases in the United States have occurred in the personal services sector
a. True b. False Indicate whether the statement is true or false
Which of the following is a variable cost for a taxi driver?
a. monthly car payment b. car insurance payment c. taxi licensing fee d. fuel costs
Which of the following approaches should the Fed use if it experiences large lags and mistakes in monetary policy?
A. Discretionary policy B. An eclectic approach C. Fixed rules D. Fiscal policy