An example of moral hazard is
a. workers shirking when the boss is not looking
b. health care insured workers dieting and exercising
c. drivers of safer cars turning their phones off before driving
d. borrowers investing their loan proceeds exactly as the bank requires
a
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On a balance sheet
A) total assets plus equity must equal total liabilities. B) total assets plus total liabilities must equal zero. C) total assets plus total liabilities plus equity must equal zero. D) total assets must equal total liabilities plus equity.
In the dominant firm model, the fringe firms
A) are price takers. B) maximize profit by equating average revenue and average cost. C) determine their price and output before the dominant firm determines its price and output. D) all of the above E) none of the above
M1 differs from M2 in that:
A. M2 includes savings deposits, small-denomination time deposits, and money market mutual funds that are not included in M1. B. the assets in M2 are more liquid than the assets in M1. C. M1 includes currency and balances held in checking accounts, which are not included in M2. D. M1 is a broader measure of the money supply than M2.
Explain why many mayors of cities facing the need to borrow for infrastructure improvements, may not look favorably on a large federal income tax rate reduction?
What will be an ideal response?