An advantage to American banks from operating foreign branches is that Eurodollar deposits in offshore branches are
A) not subject to reserve requirements.
B) insured by the FDIC.
C) subject to extensive regulatory supervision.
D) all demand deposits that pay no interest.
A
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When a person has health insurance, they often have to pay nothing or very little (called a "copay") to see a doctor. This might result in
A) their being overly healthy. B) a principal-agent problem. C) some moral hazard, since people might overuse the benefit. D) an adverse selection problem.
Refer to Figure 10.1. If the monopolist is not regulated, the price will be set at ________
A) P1 B) P2 C) P3 D) P4 E) none of the above
The short-run profit-maximizing output level for a monopolistically competitive firm is the point at which
A) P = ATC. B) MR = MC. C) MR > P. D) MR > ATC.
Which of the following is likely to improve a person's income?
a. increased productivity b. investing in human capital c. possessing a special talent or skill d. all of the above