Depositors do not check their banks carefully for stability anymore, because of the Federal deposit insurance program. This illustrates the problem of:
A. Adverse selection
B. Externalities
C. Moral hazard
D. Public goods
C. Moral hazard
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Which of the following statements is FALSE?
A) Economic goods are available in desired quantities at a zero price. B) A good is anything that gives satisfaction or happiness to individuals. C) Services are intangible goods such as dry cleaning, hospital care, and restaurant meal preparation. D) Wants are unlimited and include all material and nonmaterial desires.
An oligopoly is a market in which
a. there are only a few sellers, each offering a product similar or identical to the products offered by other firms in the market. b. firms are price takers. c. the actions of one seller in the market have no impact on the other sellers' profits. d. there are many price-taking firms, each offering a product similar or identical to the products offered by other firms in the market.
Suppose there are three nations (North, South, and East) and three goods (A, B, and C). Given resources and technology, North can produce 5 units of A, or 2 units of B, or 10 units of C, or any linear combination thereof. South can produce 5 units of A, or 2 units of B, or 5 units of C, or any linear combination thereof. East can produce either 1 unit of A, or 5 units of B, or 10 units of C, or any linear combination thereof. The most efficient pattern of specialization is to have
a) North produce A, South produce B, and East produce C b) North produce A, South produce C, and East produce B c) South produce A, North produce B, and East produce C d) South produce A, North produce C, and East produce B e) East produce A, South produce B, and North produce C
A leftward shift in AS will cause a leftward shift in the Phillips curve.
Answer the following statement true (T) or false (F)