The components of option premiums are:
A. Intrinsic value, if any
B. Time value, if any
C. The sum of (A) and (B)
D. The strike price and brokerage commission
Ans: C. The sum of (A) and (B)
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Rent-seeking activities have been a major problem in the HPAE and contributed greatly to the Asian financial crisis
Indicate whether the statement is true or false
In the period from 1929 through 1933, there were successive ________ in aggregate demand and ________ in short-run aggregate supply
A) increases; decreases B) decreases; increases C) decreases; no change D) increases; increases
The problem of asymmetric information is that:
A. neither health care buyers nor providers are well-informed. B. health care providers are well-informed, but buyers are not. C. the outcomes of many complex medical procedures cannot be predicted. D. insurance companies are well-informed, but policy purchasers are not.