To keep high inflation from eroding the value of money, monetary authorities in the United States:
A. Create token money that is less than its intrinsic value
B. Make paper money legal tender for the payment of debt
C. Establish insurance on checkable deposit accounts
D. Control the supply of money in the economy
D. Control the supply of money in the economy
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If insurance companies knew how risk-averse their customers were:
A. diversification would not occur. B. risk pooling would not occur. C. policies would be perfectly diversified, resulting in lower premiums for everyone. D. adverse selection would not occur.
Which one of the following statements about the Gini coefficient is not true?
A. It reflects the data shown in the Lorenz curve. B. It must fall when the amount of income in an economy increases. C. It equals zero when there is perfect equality. D. It equals one when there is perfect inequality. E. It increases as income inequality increases.
A potential employee that dresses well for an interview is attempting to reduce asymmetric information by
A. looking more intelligent. B. signaling their type. C. showing moral character. D. mandating that information be shared.
Exports will increase when there is
A) a reduction in the real exchange rate. B) a reduction in domestic output. C) a reduction in foreign output. D) all of the above E) none of the above