A bank's balance sheet can show a negative net worth and yet its income statement can show a profit for the year
a. True
b. False
A
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Which of the following is most likely to happen, if investment in an economy falls?
A) Firms' revenue rise. B) Mortgage defaults fall. C) Labor supply falls. D) Unemployment rises.
People in a certain group have a 0.3% chance of dying this year
If a person in this group buys a life insurance policy for $3,300 that pays $1,000,000 to her family if she dies this year and $0 otherwise, what is the expected value of a policy to the insurance company? A) $0 B) $300 C) $3,000 D) $3,300
What is creeping inflation?
a. Inflation that continues to rise but slowly. b. Inflation that suddenly appears without warning. c. Price levels that suddenly rise without warning. d. Price levels that continue to rise but slowly. e. Inflation that suddenly appears and creates panic.
Unemployment that occurs from fundamental technological changes in production, or from the substitution of new goods for customary ones, is known as
a. underemployment b. seasonal unemployment c. frictional unemployment d. structural unemployment e. cyclical unemployment