If a fire insurance company requires firms buying fire insurance to install automatic sprinkler systems, the insurance company is trying to reduce
A) the problem of adverse selection. B) asymmetric information.
C) the moral hazard problem. D) sunk costs.
C
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When consumers realize additional income in a household and spend the additional monies, the portion of the additional income that is spent is measured by the
A) marginal propensity to consume. B) measure of individual wealth. C) credit increase theory. D) aggregate demand factor.
In the United States in 2012, we produce about 1 barrel of oil for every
A) barrel of oil we export. B) barrel of oil we import. C) two barrels of oil we import. D) ten barrels of oil we import.
If social indifference curves are straight lines with slope of -1, the ethical standard for judging outcomes places all weight on the sum of outcomes and no weight on the distribution of outcomes.
Answer the following statement true (T) or false (F)
Which of the following is true in the long run? a. The aggregate demand curve determines the level of potential output
b. The long-run aggregate supply curve is horizontal. c. The actual price level and the expected price level are equal. d. Cyclical unemployment is between 5 percent and 6 percent. e. The price level is determined entirely by the long-run aggregate supply curve.