If Gerry saves $500 per month, then Gerry's ________ will increase by ________.
A. wealth; $500 only if he has no debt
B. wealth; $500 only if he buys additional assets
C. wealth; $500
D. income; $500 only if he buys additional assets
Answer: C
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Private insurance companies have been out of the flood insurance business for decades. After their departure the government has gone into the business by granting coverage with below-market premiums
Why might this be in inefficient outcome? Comment on the amount of housing that we should expect to see along our nation's coastlines. Also, discuss the degree of danger that this poses for both property and lives when hurricanes strike.
Which of the following statements is true?
A. A tax applied to an activity that generates a negative externality always brings about the socially optimal level of output. B. A subsidy applied to an activity that generates a positive externality always brings about the socially optimal level of output. C. a and b D. none of the above
An expansionary gap in the short-run results in: a. lower resource prices in the long run. b. unemployment in the long run
c. a recessionary gap in the long run. d. cost-push inflation in the long run. e. demand-pull inflation in the long run.
The existence of discouraged workers: a. increases the size of the labor force, but does not affect the unemployment rate
b. affects neither the size of the labor force nor the unemployment rate. c. may cause the official unemployment rate to understate the true amount of unemployment. d. may cause the official unemployment rate to overstate the true amount of unemployment.