Moral hazard occurs when an informed party benefits in an exchange by taking advantage of knowing more than the other party
a. True
b. False
Indicate whether the statement is true or false
False
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An economy currently has an inflationary gap. An increase in the money wage rate will ________ the inflationary gap and ________ the price level
A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase
General equilibrium refers to
A. examining markets without specific information. B. finding equilibrium from general information. C. pricing goods at their shadow price. D. all of these answer options are correct. E. none of these answer options are correct.
When comparing the price of a tablet with the price of a laptop, Amanda discovered the tablet was more expensive. This is an example of using money as
A) a store of value. B) a medium of exchange. C) a unit of accounting. D) a standard of deferred payment.
The net worth of a bank is
A. equal to the value of assets. B. equal to the value of deposits. C. equal to the value of liabilities. D. the value of assets less liabilities. E. the value of loans and securities.