An example of moral hazard is
a. A taxi driver paid per mile taking the shortest route
b. a piece-rate garment worker shirking less than a per jour worker
c. an hourly salesman working harder than a commission salesman
d. an author on contract going to as many book signings as one with a percentage royalty rate
b
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Which of the following central bank policies will lower the money supply?
a. Selling foreign currency in the foreign exchange market. b. Buying government securities. c. Lowering the reserve ratio. d. All of the above. e. None of the above.
A quota subscription is
A. the maximum amount of funds that can be drawn at the World Bank without a formal proposal. B. when an investor sets limits on the proportion of their portfolio that will contain foreign investments. C. a nation's account at the International Monetary Fund. D. the maximum amount that a private investor can invest in foreign firms.
Refer to the above figure. Given the indifference map and budget constraint represented above, the consumer will maximize utility when she consumes at
A. point A. B. point B. C. point C. D. either points A or B.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.