Life insurance companies often give applicants a physical examination to prevent
A) the person from dying before obtaining the policy.
B) signaling.
C) adverse selection.
D) profit maximization.
C
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Which of the following statements best describes Keynes’ argument about the markets and unemployment?
a. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, individual markets may be doing a perfectly good job of allocating the efforts of the nine million workers—the problem is that insufficient aggregate demand exists to support jobs for all 10 million. b. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, the problem is that individual markets are not doing a good job of allocating the efforts of the 10 million workers. c. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, sufficient aggregate demand exists to support jobs for all 10 million. d. According to Keynes, when 10 million people are willing and able to work, but one million of them are unemployed, individual markets are not doing a good job of allocating the efforts of the 10 million workers because sufficient aggregate demand exists to support jobs for all 10 million.
The economic boom between 2002 and 2006 was primarily a result of
a. a reduction in stock prices along with rising oil prices. b. a sharp reduction in the real price of resources and wages. c. an increase in both housing and stock prices. d. an increase in both resource prices and interest rates.
Diminishing marginal product describes the situation where ______.
a. the minimum change in output per hour has been reached b. as a variable input increases, additions to output decline c. average cost savings per unit of output per hour are zero d. the marginal product curve crosses below zero
From Table 2.1, which column is likely to be the one for quantity demanded? 
A. column A B. neither A nor B C. column B D. either A or B are equally likely