When a good commodity is driven out of the market by a bad commodity, the result is called:
a. moral hazard.
b. adverse selection.
c. positive externality.
d. negative externality.
e. the commons problem.
b
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The net international investment position reflects the domestic holding of foreign assets minus foreign holdings of domestic assets
Indicate whether the statement is true or false
Which of the following is NOT part of the European Union?
A) Luxembourg B) Austria C) Portugal D) Greece E) Switzerland
Which of the following is not a form of poverty assistance?
a. in-kind transfers b. cash assistance c. life-cycle wealth d. negative income taxes e. Medicaid
Suppose the velocity of money is 8, the amount of money in circulation is $200 billion, the index of prices is 150, and real GDP is $10 billion. According to the strict quantity theory of money, if the money supply doubled to $400 billion,
a. the velocity of money would fall to 4. b. the index of prices would increase to 300. c. real GDP would increase to $20 billion. d. the velocity of money would rise to 16.