Deposit insurance can lead to ________
A) an increase in adverse selection
B) a decrease in bank costs
C) a decrease in bank lending rates
D) an increase in risks banks take on
D
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The federal budget
A) is required to balance by law. B) can have a surplus but not a deficit. C) can have a deficit but not a surplus. D) can have a deficit or a surplus but cannot be balanced. E) can have a deficit, a surplus, or a balance.
The slope of a production possibilities frontier measures the ________ of producing one more unit of a good
A) marginal cost B) marginal revenue C) total revenue D) opportunity cost
Trade between countries is based on
A) absolute advantage only. B) monopoly power. C) comparative advantage. D) none of these choices.
Which of the following is not a component of aggregate demand?
a. Consumption b. Investment spending c. Government spending d. Real interest rate