Tools to help solve the adverse selection problem in financial markets include all of the following EXCEPT
A) diversification.
B) government regulations to increase information.
C) the use of financial intermediaries.
D) the private production and sale of information.
A
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If the price of good X goes up and the price of good Y goes down, then it is possible for
a. The person is better off than before. b. The person is worse off than before. c. The person is no better or worse off than before. d. All of the above are possible.
The interest rate the Federal Reserve charges commercial banks to borrow reserves is called the ________ rate.
A. prime B. discount C. Fed funds D. Federal
In 2008 as the recession worsened, suppose discouraged workers were included as part of the unemployment rate. Which of the following would have occurred?
A) The unemployment rate would have increased. B) The unemployment rate would have decreased. C) The labor force participation rate would not have changed. D) The unemployment rate would not have changed. E) The labor force participation rate would have decreased.
The current U.S. average tariff rate is
A) less than 5 percent. B) greater than 10 percent. C) approximately 20 percent. D) over 50 percent.