When consumers act as price-takers, we say that they behave
A) cooperatively.
B) competitively.
C) monopsonistically.
D) irrationally.
B
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Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. a productivity slowdown accompanied by a decrease in the labor supply. B. skill-biased technological change. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.
Assume that the aggregate demand increases while the short-run aggregate supply decreases. The result is a(n):
a. increase in both equilibrium real GDP and the price level. b. decrease in equilibrium real GDP and an increase in the price level. c. decrease in both equilibrium real GDP and the price level. d. decrease in equilibrium real GDP, while the price level remains fixed. e. increase in the price level, while the change in equilibrium real GDP is ambiguous.
Which of the following appears on the asset side of a bank's balance sheet?
a. Loans b. None of the answers are correct. c. Required reserves d. All of the answers are correct. e. Excess reserves
Answer the following statements true (T) or false (F)
1. When the government bails out failing banks, it creates a moral hazard problem; but when the government bails out homeowners who are defaulting, there is no moral hazard problem. 2. When critics of unemployment insurance claim that some of the unemployed are not exerting much effort to find jobs because of the unemployment benefits, they are referring to the moral hazard problem. 3. E-bay and Amazon provide "sellers' ratings" information based on the experiences of past buyers. This is to help resolve the adverse selection problem faced by potential buyers. 4. An example of an adverse selection problem is in insurance, where the people most likely to claim insurance payouts are the people who will seek to buy the most generous policies.