"People who have dental insurance don't floss often enough." This is an example of
A) asymmetric information.
B) bad parenting.
C) moral hazard.
D) risk adverse behavior
C
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Which of the following is associated with classical growth theory?
I. Growth in real GDP can continue indefinitely. II. Technological growth increases as the population grows. III. Population explosions bring real GDP per person back to subsistence levels. A) I B) II C) III D) I and III
If the marginal propensity to consume is 4/5, the multiplier is: a. 20
b. 5. c. 1. d. 1/5.
Markets that are more likely to be subject to adverse selection problems are those where:
A. the market relies on independent certifiers of quality. B. the goods sold in that market are highly uniform in quality. C. information is easily available to consumers and sellers. D. there is an imbalance of information between buyers and sellers
Explain how each of the following events would affect the aggregate demand curve
a. Lower interest rates b. A decrease in net exports c. A decrease in the price level d. Slower income growth in other countries e. A decrease in imports