Economists assume that individuals
A) behave in unpredictable ways.
B) will never take actions to help others.
C) prefer to live in a society that values fairness above all else.
D) are rational and respond to incentives.
Answer: D
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The main problem with securitization is that
A) governments are no longer able to repackage bank assets. B) securitized banks grow too large and create oligopolies. C) There is no problem. Governments can still get an accurate picture of global financial flows by simply examining bank balance sheets. D) governments are not able to monitor bank assets or to asses a bank's risk to the soundness of the international banking system. E) the bank assets are not marketable.
"Disgruntled" workers who quit their jobs to find "a more reasonable boss" are experiencing
A) involuntarily unemployment. B) mismatch unemployment. C) cyclically unemployment. D) turnover unemployment.
Thinking about the total utility gained from the consumption of a typical good, we can say in general that:
A. total utility will rise, peak, and then decline as more and more units are consumed. B. consuming more and more units of a good will eventually cause marginal utility to increase C. total utility increases by decreasing amounts, until it is maximized. Then it declines. D. total utility is maximized where the marginal utility is greatest.
If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then the demand for the good is _____
a. inelastic b. relatively elastic c. unit-elastic d. perfectly inelastic e. income elastic