A person who generally drives without a seat belt on does not reveal this to his automobile insurance company before he purchases insurance. This is an example of
A) adverse selection.
B) moral hazard.
C) signaling.
D) screening.
A
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From 1960 to 2012, government transfer payments as a percentage of U.S. output have:
A. Decreased as a result of improvements in private pension and health insurance plans B. Increased slightly at about the same rate as population C. Tripled as a percentage of output D. Remained approximately constant
Holding the velocity of money constant, according to the equation of exchange, a 10 percent increase in the money supply could possibly cause which of the following?
A. A 5 percent decrease in the price level. B. A 10 percent decrease in the quantity of output. C. A 5 percent increase in the quantity of output. D. A 10 percent increase in the price level.
Government spending that changes automatically without action by Congress is
A) a noncontrollable expenditure. B) national defense. C) payments to contractors for routing services performed. D) discretionary payments.
A good would not be very suitable to use as money if it
a. is portable because it is needed as a store of value b. is divisible because each unit of money should have the same value c. is scarce because we need more money as the economy grows d. is commonly accepted as a medium of exchange because everyone will hoard it e. lacks uniformity because the money supply would be of varying quality and people will hoard the preferred money and circulate only the less preferred