Over the long run, a government's fundamental source of revenues is
A. issuing bonds.
B. printing money.
C. exports.
D. user fees and taxes.
Answer: D
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Adverse selection in insurance requires that
a. potential customers face different levels risk b. potential customers facing more risk are no more interested in purchasing insurance c. people are not risk averse d. insurers can tell higher risk people from lower risk people
Which of the following would be classified as unemployed
What will be an ideal response?
According to UIP, when interest rates are equal, the exchange rate of the country's home currency is expected to:
a. fall. b. remain constant. c. rise. d. Not enough information is provided to answer the question.
Suppose the market for "soda X" is in equilibrium. If the FDA announced today that this soda has been proven to cause a fatal disease, what would be most likely to happen to the equilibrium price and equilibrium quantity of soda X?
A. Price increases and quantity increases B. Price decreases and quantity increases C. Price increases and quantity increases D. Price decreases and quantity decreases