Which of these is an argument for using the potential compensation criterion?
a. If the winners can compensate the losers, no one is harmed by employing the criterion.
b. The criterion does not employ interpersonal utility calculations.
c. If employed over a large number of policy changes, everyone should enjoy a net gain in the long run.
d. It is easy to determine the magnitude of the wins and losses.
c
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Robert applied for health insurance but did not mention in the application form that his family has a history of heart ailments that are considered to be hereditary. What will happen if several customers like Robert purchase the insurance?
What will be an ideal response?
Primary credit is only a backup source of funds for health banks since
A) the primary credit rate is set above the federal funds rate. B) restrictions as to its use limit its benefits. C) the secondary credit rate pays 0.5% more. D) banks must seek funds from other sources prior to requesting a discount loan.
The labor supply curve:
A. is made up of firms who want to hire workers at each given wage. B. is made up of workers who want to work for firms at each given wage. C. shows number of firms who are willing and able to hire workers at each given wage. D. shows that the number of firms who want to hire workers decreases as the wage increases.
The unconstrained supply of labor refers to the amount a household ________ within a given period at the current wage rate if it could find the work.
A. chooses not to work B. would like to work C. actually works D. is forced to work