The cyclically-adjusted budget deficit in an economy is zero. If this economy goes into recession, then the actual government budget will be:
A. Balanced
B. In deficit
C. In surplus
D. Expanding
B. In deficit
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The third round of quantitative easing, announced in September 2012, was focused on purchases of:
A) short-term Treasury bills B) long-term Treasury notes C) long-term Treasury notes and sales of short-term Treasury bills D) mortgage-backed securities
In the market for both renewable and nonrenewable resources, the timing of the use of resources depends on:
a. the alternatives uses to which the resource is put. b. the market rate of interest. c. the availability of substitutes. d. the elasticity of demand for resources. e. government regulations.
In terms of insurance, which of the following statements is explained by adverse selection?
A. A person with riskier characteristics tends to be more likely to buy insurance. B. Insurance companies charge risk-averse customers a higher premium, since they need more peace of mind. C. A person who is more risk-averse tends to be more likely to buy insurance. D. None of these statements is true.
Production possibilities in an economy decrease as more resources and better technology are utilized.
Answer the following statement true (T) or false (F)