An insurance company offering both high-deductible and low-deductible plans is an example of:
A. signaling.
B. statistical discrimination.
C. building a reputation.
D. screening.
D. screening.
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Suppose you have four choices—go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is
A) the value of the book not read. B) the value of the television program not watched. C) the value of the concert that you didn't attend. D) the value of the activity that you would have selected if you hadn't gone to the movie.
When quantity is measured in gallons, the price elasticity of demand for milk will be __________ the price elasticity when quantity is measured in quarts
a. the same as b. four times c. one quarter d. two times e. less than
Which of the following effects results from the change in the interest rate created by an increase in government spending?
a. the investment accelerator and crowding out b. the investment accelerator but not crowding out c. crowding out but not the investment accelerator d. neither crowding out nor the investment accelerator
The CAMELS ratings are:
A. published once a quarter in banking journals issued by the Federal Reserve. B. not made public. C. made public monthly to the financial markets so people can judge the relative quality of banks. D. included in the annual report of publicly owned banks.