The term "direct relationship" means the same as
A) correlation.
B) trend.
C) positive relationship.
D) negative relationship.
C
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If fewer cigarettes are consumed with symmetric information than asymmetric information, it follows that
A. with asymmetric information the demand for cigarettes is lower than with symmetric information. B. with symmetric information the demand for cigarettes is lower than with asymmetric information. C. the demand for cigarettes is the same with or without asymmetric information. D. there are more free riders with asymmetric information than symmetric information. E. There is not enough information to answer the question.
The quantity of loanable funds demanded
A. is where the interest rate equals the MPP of investment. B. is where the interest rate equals the MRP of investment. C. is where the interest rate equals the discounted value of investment. D. is where the interest rate makes equals the rental rate for marginal land.
In the Edgeworth box diagram, if the initial allocation of consumer goods is off the contract curve, then we can be sure that
A. the MRS of each consumer is the same. B. both parties can be made better off. C. trade will occur if allowed and transactions costs are high. D. the initial allocation is unfair.
Recall the Application about how policymakers use stress tests to protect the financial system to answer the following question(s).According to this Application, after the financial crisis of 2008, former Treasury Secretary Timothy Geithner and his staff made a proposal that major banks and financial institutions be subjected to:
A. yearly audits. B. stress tests. C. regulation by Congress. D. None of these.