A precept is:
A. a proposition that is logically true based on the assumptions of a model.
B. the application of models combined with judgment.
C. a set of equations that define a model.
D. a policy rule that concludes that a particular course of action is preferable.
Answer: D
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The returns to education are
A) lowest in developing nations. B) highest in developing nations. C) never reflected in the wages of workers. D) highest in developed nations.
If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of
A) 0.9 percent of its assets. B) 0.9 percent of its liabilities. C) 1.8 percent of its liabilities. D) 1.8 percent of its assets.
Secular deflation
A) has been a serious problem during the last three decades in the United States. B) although present, has not been a problem during the last three decades in the United States. C) has not been present in the United States since 1959. D) cannot exist in a capitalistic economy.
Long-term trends for private employer-sponsored insurance indicate that:
a. enrollment in the staff-model HMO is becoming more popular. b. there is a resurgence in the popularity of traditional indemnity insurance coverage. c. the continued popularity of the preferred provider organization is reflected by the fact that it is still the fastest growing form of insurance. d. almost one-third of private sector employees covered by group plans are enrolled in some form of high-deductible health plan. e. the high-deductible health plan (HDHP) is now the most popular form of insurance for private sector employees covered by group plans.