Which of the following is an example of hidden actions?
a. a mechanic tells you that you need an entire new engine when you only need a oil change.
b. a sales person tells you that you look good in a dress when you don't
c. a sales person tells you which color they think goes best with your paint you have chosen
d. a sales person tells you which car gets the best gas mileage
a
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Economists believe that externalities can be cured by market methods
a. True b. False Indicate whether the statement is true or false
The change in total planned real expenditures resulting from a change in the real value of money balances when the price level changes, all other things held constant, is
A. the real-balance effect. B. the open economy effect. C. demand side inflation. D. the interest rate effect.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
Which of the following statements regarding member banks is true?
A) A majority of banks are part of the Federal Reserve System as well as a majority of bank deposits. B) A minority of banks are part of the Federal Reserve System, but they have a majority of deposits. C) A majority of banks are part of the Federal Reserve System, but they have a minority of deposits. D) A minority of banks are part of the Federal Reserve System as well as a minority of deposits