The difference between an interest rate and some other, benchmark interest rate is known as the
a. spread.
b. rate difference
c. rate of return differential.
d. rent.
e. income differential.
A
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Explain what it means to have a mixed-strategy equilibrium in a zero-sum game. What happens if a player deviates from this mixed-strategy equilibrium?
What will be an ideal response?
Which of the following could be written into an insurance contract in order to reduce the problem of moral hazard?
a. co-payments for repair services b. deductibles for repair services c. limitations on insurance coverage d. All of the above are correct.
Who among the following provides a productive service?
A) Bill, a talented software developer B) Monica, a paid Washington, D.C. intern C) Buggs, an illicit drug smuggler D) All of the above.
Which of the followings is NOT true about the word "autonomous" that economists use?
A) Changes in autonomous components are associated with movements along a curve. B) Changes in autonomous components are associated with shifts of a curve. C) The autonomous component of a variable is exogenous. D) The autonomous component of a variable is independent of other variables in the model.