The following is an example of adverse selection
a. A majority of those applying for well paid jobs are well qualified
b. More reckless drivers opt for cars with fewer safety devices
c. Individuals living in less secure neighborhoods want to buy more insurance
d. Individuals with a strong family history of heart diseases opt to buy less insurance
c
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Transfer payments
A) are included in the government expenditure category in gross domestic product. B) refer to all payments made to households by governments. C) refer to payments made by the government that are not made to purchase a good or service. D) are made by households to firms in exchange for goods and services.
The expenditure multiplier applies only to changes in government spending
a. True b. False Indicate whether the statement is true or false
As the price level in an economy increases, firms receive lower revenues for their output and thus increase production in the short run
a. True b. False Indicate whether the statement is true or false
If the existence of alternative opportunities makes people become less willing to work in poultry processing plants, then the real wage of unskilled workers in poultry processing plants is predicted to ________ and the employment of unskilled workers in poultry processing plants is predicted to ________.
A. increase; decrease B. decrease; decrease C. increase; not change D. increase; increase