Moral hazard:
A. is about the unobserved actions of people.
B. is about the unobserved characteristics of people.
C. occurs before the parties have entered into an agreement.
D. None of these statements is true.
Answer: A
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This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, what is the firm's marginal revenue from the 3rd unit produced?
A. $50 B. $150 C. $90 D. $60
The owners of Market Analysts, a business and economics consulting firm, are big believers in paying benchmark competitive wages. They pay all (nonlegally specified) compensation in wages. If an employee wants a benefit, the company has an insurance program, but it comes out of the employee's paycheck. Market Analysts tends to hire very young workers just out of college. They are energetic and work hard, but after two years they tend to leave for other firms, taking valuable training with them. If Market Analysts wants to keep its employees, what changes should it make to the terms of employment offered to new employees?
What will be an ideal response?
A recession begins in January but government policy makers do NOT reach a consensus that a recession had in fact begun until June. This is an example of a(n)
A. effect time lag. B. quick time lag. C. recognition time lag. D. action time lag.
In what way are the 12 Federal Reserve Banks considered “quasi-banks”?
What will be an ideal response?