Government policy-makers often must decide how to balance the potential benefits of ______________ against the potential benefits of _____________
A. competition; nationalization
B. corporate size; competition
C. corporate size; predatory pricing
D. nationalization; privatization
Ans: B. corporate size; competition
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An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
When the money supply is expanding and prices rise rapidly, economic growth
a. is slowed by the resulting unpredictability of the future level of prices. b. is enhanced as economic activity grows more rapidly. c. is enhanced because profits are higher so that capital investment is greater. d. is enhanced because existing debt is reduced in value, so people are willing to buy more goods.
Psychological research shows that choices that involve ________ are likely to turn out worse than those involving ________.
A. low payoffs; high payoffs B. simple information; complicated information C. high payoffs; low payoffs D. complicated information; simple information
The Depository Institutions Deregulation and Monetary Control Act of 1980
A. made the Federal Reserve's job of managing the money supply a lot easier. B. made the Federal Reserve's job of managing the money supply a lot harder. C. had no effect upon the Federal Reserve's job of managing the money supply.