If bad drivers can usually avoid being ticketed by the police, then insurance companies will
A) use one's driving record as a signal.
B) use one's driving record as a screening device.
C) not be able to use one's driving record as a screening device.
D) request driving records directly from the police and not from the individual applicant.
C
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If prices have decreased since the base period, then
A) real GDP is smaller than nominal GDP. B) real GDP is larger than nominal GDP. C) real GDP is equal to nominal GDP. D) there is no way to adjust nominal GDP so that it equals real GDP. E) real GDP can no longer be compared to nominal GDP.
Ultimately, trade agreements are necessary because
A. farmers need to be assured of access to foreign markets. B. exports make everyone worse off. C. tariff reduction can be politically popular within many countries. D. tariff reduction can be politically unpopular within many countries.
The legislation that prohibited "every contract, combination, ...or conspiracy" that limits competition is the:
A. Federal Trade Commission Act. B. Clayton Act. C. Sherman Act. D. Celler-Kefauver Act.
Other things being equal, along an aggregate demand curve, a higher price level is associated with
A. a higher real GDP. B. a lower real GDP. C. higher income levels. D. a lower nominal GDP.