Which industry has the most problems with moral hazard and its adverse effects on other unknowing people in this industry?
a. retail
b. insurance
c. office supplies
d. education
b
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If the monopoly illustrated in the figure above could engage in perfect price discrimination, then the lowest ticket price would be
A) $1.00. B) $2.00. C) $3.00. D) $3.50.
Suppose that Captain Canada can produce 100 hockey sticks or 10 gallons of maple syrup in a typical work week, while Captain Germany can produce 90 hockey sticks or 10 gallons of maple syrup in a typical work week. From these numbers, we can conclude
a. Captain Canada has a comparative advantage in the production of hockey sticks. b. Captain Germany has a comparative advantage in the production of maple syrup. c. Captain Canada has an absolute advantage in the production of hockey sticks. d. All of the above conclusions are correct.
The basic difference between macroeconomics and microeconomics is that
a. microeconomics is concerned with aggregate markets and the entire economy, while macroeconomics is concerned with specific individual markets. b. macroeconomics is concerned with policy decisions, while microeconomics applies only to theory. c. microeconomics is concerned with individual markets and the behavior of people and firms, while macroeconomics is concerned with aggregate markets and the entire economy. d. macroeconomics is concerned with positive economics, while microeconomics is concerned with normative economics.
For a government, the appropriate Keynesian response to a recessionary gap is to increase government spending
a. True b. False Indicate whether the statement is true or false