Adverse selection is
a. when people act differently because they are insured
b. when more risk averse people want to be insured more
c. when people at a greater risk want to be insured more
d. when your guess at a test question is wrong
c
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If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff. B) a government license. C) a patent. D) economies of scale.
Which of the following effects helps to explain the slope of the aggregate-demand curve?
a. the exchange-rate effect b. the wealth effect c. the interest-rate effect d. All of the above are correct.
Suppose the football team at your university wins 10 games in a row. The following will be a possible outcome of this event in the market for football tickets:
A. The equilibrium price and the equilibrium quantity will increase B. The equilibrium price will decrease and the equilibrium quantity will increase C. The equilibrium price and the equilibrium quantity will decrease D. The equilibrium price will increase and the equilibrium quantity will decrease
Since 2008, excess reserves have increased from:
A. $2 billion to almost $3 billion. B. $2 billion to almost $3 trillion. C. $2 trillion to almost $3 trillion. D. $3 billion to almost $2 trillion.