Which of the following statements is/are correct?

I. Depository institution managers undertake riskier actions than they otherwise would because of the existence of deposit insurance.
II. Because of the existence of deposit insurance, depositors in savings and loans and other banks have little incentive to investigate the financial stability of these institutions.
A) I only B) II only C) both I and II D) neither I nor II


C

Economics

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Labor productivity is calculated as

A) (real GDP ÷ aggregate hours). B) (real GDP ÷ aggregate hours × number of workers). C) (real GDP ÷ number of workers × ratio of capital per worker). D) (real GDP ÷ technology level). E) (real GDP ÷ aggregate hours × number of workers) × 100.

Economics

The income that includes a household's earnings in addition to cash transfers from the government is called

A) market income. B) real income. C) money income. D) cash income.

Economics

Exhibit 9-6 Two-Firm Payoff Matrix ? Suppose costs are identical for the two firms in Exhibit 9-6. Each firm assumes without formal agreement that if it sets the high price its rival will not charge a lower price. Under these "tit-for-tat" conditions, equilibrium will be established by:

A. Widget Co. charging the high price and Ajax Co. charging the low price. B. Widget Co. charging the high price and Ajax Co. charging the high price. C. Widget Co. charging the low price and Ajax Co. charging the low price. D. Widget Co. charging the low price and Ajax Co. charging the high price.

Economics

In which of the following market structures do you find barriers to entry?

A. a monopoly B. a perfectly competitive market C. a monopolistic competition D. Both a monopoly and a perfectly competitive market are correct

Economics