John has been a sky diver for many years. When the company John works for offers its employees the option to purchase a life insurance policy, John purchases a policy. This illustrates the problem of
a. moral hazard.
b. adverse selection.
c. risk-return tradeoff.
d. diversification.
b
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Looking at real and nominal interest rates in the United States since 1971, we see that the
A) nominal interest rate has at times been negative. B) real interest rate has been greater than 10 percent for most years. C) real interest rate has at times been negative. D) real interest rate was above 5 percent during the low inflation of the 1970s. E) real interest is generally greater than the nominal interest rate.
What happens to the quantity of labor supplied, the quantity of labor demanded, and the number of unemployed workers if the minimum wage rate set above the equilibrium wage is increased still higher?
What will be an ideal response?
Total surplus equals:
a. consumer surplus + producer surplus ? deadweight loss. b. consumer surplus ? producer surplus ? deadweight loss. c. consumer surplus ? producer surplus + deadweight loss. d. consumer surplus + producer surplus.
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. If consumers' income is $50,000 and the price of satellite TV service is $90, then which of the following gives the demand curve for cable TV?
A. QCTV = 17 - 0.25 × PCTV B. QCTV = 67 - 0.25 × PCTV C. QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV D. QCTV = 13 - 0.25 × PCTV