When an individual is judged by the characteristics of the groups to which he or she belongs rather than on his or her own characteristics, it is called:
A. adverse selection.
B. statistical discrimination.
C. moral hazard.
D. the lemons model.
Answer: B
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If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 10 percent and there is no inflation, what will be the level of investment in the economy?
A) $0 B) $200 C) $300 D) $500
Changes in the amount of goods produced, but not sold in a given year is called:
A) inventory investment B) business fixed investment C) residential fixed investment D) consumption
Total utility can be calculated as the
a. sum of all marginal utilities b. price paid for one unit of a good c. product of all marginal utilities d. total expenditure on all units of a good the consumer buys e. difference between the marginal utilities of the first and last units of a good
A tax of a specific absolute sum levied on every person in the nation is called a(n)
a. income tax b. proportional tax c. progressive tax d. equitable tax e. poll tax