Which of the following practices of insurers deter moral hazard?
a. Setting a uniform premium structure.
b. Requiring people to purchase the same coverage.
c. Arranging for reinsurance to cut the risk of unexpectedly large claims.
d. Conducting security checks without notice and terminating the policy whenever required.
D
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Why did the United States abandon the gold standard in the 1930s?
A) The government wanted to move away from a floating exchange rate system to a fixed exchange rate system. B) The Treasury Department in the United States found it was cheaper to print paper money instead of gold coins. C) The government wanted to rapidly expand the money supply in response to the Great Depression. D) New sources of gold were discovered, so the price of gold plummeted, dramatically reducing the value of the dollar.
In a certain economy, toys and greeting cards are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more toys and more greeting cards, relative to the quantities of those goods that are being produced now?
a. The economy experiences economic growth. b. There is a technological advance in the toy industry, but the greeting card industry experiences no such advance. c. There is a technological advance in the greeting card industry, but the toy industry experiences no such advance. d. All of the above are correct.
Ceteris paribus, which of the following will occur if the Fed buys bonds through open-market operations?
A. The aggregate supply curve should shift leftward. B. The aggregate supply curve should shift rightward. C. The aggregate demand curve should shift leftward. D. The aggregate demand curve should shift rightward.
Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. Most OLED TVs sold in the United States are imported from Asia. If the United States government reduces the number of OLED TVs that can be imported into the United States, ceteris paribus, what would happen?
A. The price of OLED TVs and the price of streaming movies would increase. B. The price of OLED TVs and the price of streaming movies would decrease. C. The price of OLED TVs would decrease, and the price of streaming movies would increase. D. The price of OLED TVs would increase, and the price of streaming movies would decrease.