The large number of bank failures in the 1980s compared to the number of failures in earlier decades appears to be evidence __________ the existence of __________ problem in deposit insurance
A) supporting; a moral hazard
B) supporting; an adverse selection
C) against; a moral hazard
D) against; an adverse selection
A
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A situation where limited resources make it impossible to fulfill all of our wants is known as
A) scarcity. B) opportunity cost. C) a trade-off. D) responding to incentives.
If Wisconsin cheddar cheese sells for $3.00 per pound in the United States and for 27.90 pesos in Mexico, what is the exchange rate between the dollar and the peso (assuming PPP holds)?
a. $1 = 2.79 pesos b. $1 = 7.90 pesos c. $1 = 9.30 pesos d. $1 = 27.90 pesos
To the degree that the Plumbers and Steamfitters union conducts costly training and apprentice requirements for prospective electricians, it is
A. shifting the supply of plumbers to the left. B. shifting the demand for plumbers to the left. C. shifting the supply of plumbers to the right. D. kinking the supply of plumbers to make it vertical at the level of the constraint.
Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) If business income is total output minus total labor cost, then business income in country A after the immigration occurs is equal to area:
A. haf
B. habg
C. hcg
D. hce0