Liens __________ the moral hazard problem since the borrower is then __________ to sell the affected assets at its discretion
A) worsen; able
B) worsen; unable
C) ease; able
D) ease; unable
D
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The effect of higher wages on the individual supply of labor is ________ and the effect of higher wages on the market supply of labor is ________.
A. ambiguous; to increase the quantity supplied B. to increase the quantity supplied; ambiguous C. ambiguous; to decrease the quantity supplied D. to decrease the quantity supplied; ambiguous
The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor market experiences a
A. surplus. B. quality decrease. C. shortage. D. excess demand.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.
The zero lower bound on the nominal interest rate arises because
A) if the nominal interest rate were less than zero, an arbitrage opportunity would exist. B) bank profits must be zero. C) the government would not allow it. D) the economy would crash.