In the two-period model with asymmetric information, a bank
A) creates money.
B) keeps money safely.
C) multiplies reserves.
D) borrows and lends.
D
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With no international trade, a country ________ consume at a point outside of its PPF; with international trade, a country ________ consume at a point outside of its PPF
A) cannot; can B) can; can C) can; cannot D) cannot; cannot E) None of the above answers is correct because the presence or absence of international trade has nothing to do with where a country consumes in comparison to its PPF.
When regulating a natural monopoly, the regulating agency should set price equal to marginal cost
a. True b. False
Adam Smith stated, "The man of system is apt to be very wise in his own conceit. He seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chess-board.". Which is true of this statement?
a. Keynes would tend to agree with the statement; Heyek would disagree with it. b. Keynes would tend to disagree with the statement; Hayek would agree with it. c. As the rap video indicates, both Keynes and Hayek strongly agree with this statement. d. As the rap video indicates, both Keynes and Hayek strongly disagree with this statement.
When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor
a. True b. False Indicate whether the statement is true or false