Suppose that workers in Transylvania can produce only two goods -- yo-yos or sweatsocks. The Transylvanian currency is the daler. In what unit is the opportunity cost of yo-yos measured?
a. dalers
b. dalers per yo-yo
c. dalers per sweatsock
d. yo-yos
e. sweatsocks
E
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Which of the following is NOT a part of aggregate expenditure?
A) exports B) investment C) imports D) government expenditure E) taxes
Insurance companies typically charge women lower prices than men for automobile insurance. Is this an example of price discrimination?
A) Yes, because insurance companies can prevent arbitrage; that is, women cannot transfer their insurance coverage to men. B) No, because there are too many insurance companies for any one company to have market power. A firm must possess market power in order to practice price discrimination. C) No, because, on average, women have better driving records than men and the costs of insuring men are greater than the costs of insuring women. D) Yes, because the costs of selling insurance to men and women are the same.
At what stage of the securitization process was moral hazard a major problem?
a. Securitization. b. Rating securitized issues. c. Insuring securitized issues d. All of the above
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.