On average, women live longer than men. If an applicant's gender is ignored in determining life insurance prices:
A) men will subsidize women
B) women will subsidize men
C) no subsidization will occur because only group longevity results are valid
D) morale hazard will increase significantly
B
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Suppose the economy is thought to be 5 percent below potential (i.e., the output gap is ?5 percent), when potential output grows 3 percent per year. Suppose the Fed is following the Taylor rule, with an inflation rate of 6 percent over the past year. The equilibrium real fed funds rate is 3 percent and the weights on the output gap and inflation gap are 0.5 each. The inflation target is 1 percent. What should the federal funds rate be?
A. 4 percent B. 6 percent C. 8 percent D. 9 percent
Due to a recession, the Acme Global Corporation has a labor surplus. It wants to find a way to reduce the surplus while both being fair to employees and being ready to respond to increased demand when the recession is over. Its best method for dealing with its surplus would be _________.
A. job sharing B. early retirement C. hiring freezes D. natural attrition E. skill increases
The results for a class of 10 after an examination are as follows: 56, 59, 64, 76, 78, 49, 62, 79, 86, 94. A teacher creates a list of students and their marks using spreadsheet software. To find the number of students who scored between 65 and 75, he selects the Custom Filter function and enters "Greater Than" 65 or "Lesser Than" 75 as his criteria. How many students will be selected?
A. 5 B. 3 C. 10 D. 0
New technology makes it possible to digitize a micro-record so it can be transmitted to a user via e-mail
Indicate whether the statement is true or false.