Suppose interest rates in foreign countries increase relative to the U.S. interest rate. As a result, there is ________ the demand curve for dollars
A) a downward movement along
B) a leftward shift of
C) a rightward shift of
D) an upward movement along
E) neither a movement along nor a shift of
B
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If a price ceiling of $8 were placed in the market in the graph shown, which area represents deadweight loss?
A. F + G
B. B + D
C. E
D. B + D + F + G
Between 1930 and 1933, many banks in the U.S. failed because: a. the FDIC moved too slowly to prevent the bank failures
b. most bankers were either corrupt or incompetent. c. of excessive regulation by the federal government. d. people shifted their funds to take advantage of rising stock market prices. e. people lost confidence in them.
Cyclical unemployment results from:
A. a deficiency of spending on goods and services. B. the decreasing relative importance of goods and the increasing relative importance of services in the U.S. economy. C. the everyday dynamics of a free labor market, with workers voluntarily changing jobs. D. technological change.
Automobile insurance companies have a problem with people who buy insurance and then drive recklessly or take less care to avoid losses after being insured. In other words, the automobile insurance market is subject to
A) asymmetric information. B) market signaling. C) moral hazard. D) adverse selection.