Which of the following is not an example of moral hazard?
a. People with health insurance take poor care of themselves.
b. Reckless drivers own the safest cars.
c. Banks make risky loans because deposit insurance protects them.
d. People give more to charity just because it is tax deductible.
e. A quarterback holds on to the ball longer before passing because he has a good offensive line.
D
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
What is the most likely effect of legislated rent controls on the rental vacancy rate in an area adopting such controls?
A) The vacancy rate will not change because rent controls don't change the demand (curve) for housing. B) The vacancy rate will rise because owners will be less eager to have tenants in their buildings. C) The vacancy rate will fall because rent controls create a shortage situation. D) The vacancy rate will become wholly arbitrary and unpredictable because allocation decisions will have to be made by political rather than economic criteria.
Lengthening of the average unemployment spell suggests that ________ unemployment is growing in importance
A) frictional B) structural C) cyclical D) turnover
What best describes the relationship between England and the US?
a. Throughout US history Britain has been one of the leading sources of immigrants. b. During most of the colonial period it provided relatively little monitoring of colonial actions. c. England often fought the Portuguese to protect its holding in colonial America. d. Until the Civil War, England was the primary source for American manufactured goods.