As the federal funds rate rises, the banks' opportunity cost of holding excess reserves falls
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following should help reduce the adverse selection problem?
A) the employer mandate provision of the Affordable Care Act B) the individual mandate provision of the Affordable Care Act C) keeping high-risk and low-risk individuals in the same health insurance pool D) all of the above
If a university begins a policy of permanently expelling any student caught cheating in any way, you would expect that: a. no students would cheat
b. fewer students would cheat. c. major cases of cheating would become a larger fraction of all cases of cheating attempted. d. Both b. and c. would occur.
A conglomerate merger occurs when
a. the goods produced by the merging firms are not related b. one firm produces goods while the other produces services c. one firm is a domestic firm while the other is a foreign firm d. the firms are in a buyer-seller relationship e. the merging firms produce identical or close substitute goods
In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an eight-hour day, John can produce either 8 loaves of bread or 8 pounds of butter. The opportunity cost of producing 1 pound of butter is
A) 1/3 hour for Andy and 1 hour for John. B) 1 hour for Andy and 1 hour for John. C) 3 loaves of bread for Andy and 1 loaf of bread for John. D) 1/3 loaves of bread for Andy and 1 loaf of bread for John. E) none of the above