The example of Enron shows that
A. organizational structure is extremely important in business success.
B. the success of a business is possible in a regulatory environment.
C. selection of people is the key to organizational success or failure.
D. large incentives play an important role in motivating people within a corporation.
Answer: A
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As healthy people leave an insurance pool, premiums rise, which cause more people to leave the pool and even higher premiums. This describes
A) moral hazard. B) the reversibility paradox. C) irrational pricing. D) a premium death spiral.
When a nation exports a good, its ________ surplus increases and its ________ surplus increases
A) consumer; total B) consumer; consumer C) producer; producer D) producer; total E) total; consumer
If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy?
A) an increase in oil prices B) an increase in taxes C) an increase in government spending D) a decrease in the money supply and an increase in the interest rate
Government decreasing taxes is an example of:
A. expansionary fiscal policy. B. contractionary fiscal policy. C. expansionary monetary policy. D. contractionary monetary policy.