Economists disagree with constant government bailouts of large, struggling companies because it can give a rise to
a. Moral hazard
b. Adverse selection
c. Lazy managers
d. None of the above
a
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Answer the following statements true (T) or false (F)
1. The quantity supplied is inversely related to price. 2. If demand and supply increase by the same amount, equilibrium price will rise. 3. If supply increases more than demand, equilibrium price will fall. 4. A change in demand occurs whenever consumers will purchase more because of a decrease in price. 5. An increase in demand tends to increase both the equilibrium price and the amount of a commodity exchanged.
Mortgage backed securities had a role in the 2008 financial crisis
Indicate whether the statement is true or false
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. decreasing inflation only. B. government policy. C. increasing or decreasing inflation. D. increasing or decreasing potential output.
Which of the following are true about functions in the duality picture:
A. Compensated demand functions are homogeneous of degree zero in prices. B. Uncompensated demand functions are homogeneous of degree zero. C. Expenditure functions are homogeneous of degree zero. D. Both (a) and (b). E. Both (b) and (c). F. Both (a) and (c). G. All of the above. H. None of the above.