What is one reason the federal government might "bail out" farmers in flood prone areas of the country?
A) Such flooding is not diversifiable and therefore only non-profit entities, such as the federal government, can cover the risks.
B) Such flooding is diversifiable, but insurance company CEOs are more concerned with their stock-holder wealth than the well-being of farmers.
C) Such flooding is diversifiable, but the market for such insurance policies cannot clear without the assistance of the International Community.
D) Such flooding is known to happen on a regular basis and therefore there is no "risk" to be insured against.
A
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Primary dealers are those
A) permitted to trade directly with the Fed. B) who work under the account manager at the Federal Reserve Bank of New York. C) who specialize in selling bonds to small private investors. D) responsible for assuring that interest rates do not decline unless the FOMC has given specific instructions that they decline.
The U.S. fiduciary monetary system
A) is the one agency responsible for providing coins and paper currency. B) is one where money is not convertible to a fixed quantity of gold. C) puts capital controls in place. D) controls the private banking system.
Under a floating exchange-rate system, a country needs to pay more attention to the economic policies of the rest of the world
a. True b. False Indicate whether the statement is true or false
Canada is said to have an absolute advantage vis-à-vis the U.S. in the production of cod because it can produce cod
a. in larger quantities b. while the U.S. can't c. at a lower opportunity cost d. with fewer resources e. at a higher opportunity cost