Direct regulation means that government sets specific limits on the use of scarce resources.
Answer the following statement true (T) or false (F)
True
See the definition of direct regulation in the textbook.
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The population of Omega totals one million people, 30 percent of whom are employed. Average output per worker in Alpha is $30,000. Real GDP per person in Alpha totals:
A. $9,000. B. $100,000. C. $21,000. D. $30,000.
An argument in favor of fractional-reserve banking is that
A) unregulated institutions would be riskier than regulated fractional-reserve banks. B) it increases the precision of the central bank's control over the quantity of money. C) a bank deposit is owned by the depositor, so the bank has no legal right to lend the deposit to someone else. D) it decreases the risk of a bank running out of cash.
In the above figure, when real disposable income is less than 600, then
A. the MPC will fall. B. consumption is less than disposable income. C. consumption is the same as disposable income. D. consumption is more than disposable income.
Health insurance companies impose deductibles on policies and co-payments on claims
A) to increase sales. B) to reduce moral hazard problems. C) to reduces sunk costs. D) to increase prices.