Which of the following occurs when party A would like to change his behavior if party B would change hers, and vice versa, and yet the two changes do not take place because the decisions of A and B are made independently?
a. Moral hazard
b. Coordination failure
c. Leakage
d. Lemon problem
b
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The table above gives data for the nation of Mosh. The amount of autonomous expenditure is
A) $1.5 trillion. B) $4 trillion. C) $9.0 trillion. D) $4.5 trillion. E) not shown in this table.
In an oligopoly with differentiated products, firms ________
A) make positive economic profits B) incur losses C) earn zero economic profits D) do not face competition from its rivals
In 2011, the U.S. experienced
a. both current account and financial account deficits. b. a deficit in the current account and a surplus in the financial account. c. a surplus in the current account and a deficit in the financial account. d. a surplus in both the current account and the financial account.
Which of the following contributed to the strong auto sales and soaring housing prices during 2002-2004?
a. the Fed's high-interest rate policy during the period b. the tightening of loan standards by commercial lenders c. the increasing popularity of fixed-rate, long-term loans to lock in low interest rates d. the Fed's low-interest rate policy during the period