Which of the following is not a form of social insurance?
a. Social Security
b. Temporary Assistance for Needy Families
c. Medicare
d. unemployment insurance
e. workers' compensation
B
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How does the use of adjustable-rate mortgages affect interest-rate risk?
A) It reduces the interest-rate risk of lenders. B) It reduces the interest-rte risk of borrowers. C) It reduces the interest-rate risk of both lenders and borrowers. D) It increases the interest-rate risk of both lenders and borrowers.
Consider a market that is in equilibrium. If it experiences an increase in supply, what will happen? The supply curve will shift to the:
A. right and the equilibrium price and quantity will rise. B. right and the equilibrium price will decrease and the equilibrium quantity will increase. C. right and the equilibrium price and quantity will fall. D. left and the equilibrium price and quantity will fall.
Which of the following could be a barrier to entry?
a. diseconomies of scale b. a large number of buyers and sellers c. a standardized product d. economies of scale e. diseconomies of scope
When managers in oligopolistic firms make decisions that affect output or price, they must
A) also be sure they erect barriers to entry to prevent new entrants from affecting their plans. B) anticipate the reactions of their rivals and plan accordingly. C) register with the Antitrust Division of the Department of Justice. D) inform the regulators of their industry about their plans.