How does moral hazard matter in the market for insurance?
Once people have insurance, they have less incentive to be careful about risky behavior.
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Assume that a firm has $100 million in real assets and $90 in real liabilities. If the price level falls by ten percent, the real value of liabilities would ________
A) fall to $81 million B) change, but more information must be provided to determine the exact movement C) remain unchanged D) rise to $99 million
A mutual fund
a. is a financial market where small firms mutually agree to sell stocks and bonds to raise funds. b. is funds set aside by local governments to lend to small firms who want to invest in projects that are mutually beneficial to the firm and community. c. sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit. d. is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks, bonds, or both stocks and bonds.
In general, the MRP _____ as output increases.
A. declines B. rises C. stays the same
When total utility is maximized, marginal utility will be
a) Positive b) Zero c) negative d) negative then positive