Bank A had a reputation for asking few questions when it provided loans. Two years later, the majority of the loans were not repaid. This is because the bank had failed to address the
A. free-rider problem.
B. moral hazard problem.
C. contrary selection problem.
D. adverse selection problem.
Answer: D
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Incrementalism may be an efficient way to craft a budget because _____
a. it minimizes government size b. it is difficult to measure the benefits of many government programs c. it removes special interest influence from the budget process d. it requires that programs be cost-effective to continue
What is Jim's opportunity cost of operating his own business?
a. the total amount of money he puts into capital equipment b. the value of his labor that is put into the business c. the cost of hiring his laborers d. All of the above are correct.
Refer to the graph shown.
Which of the graphs correctly depict the short-run Phillips curve with globalization?
A. A B. B C. C D. D
In a monopsony labor market, a minimum wage set equal to the competitive market equilibrium wage rate can ________ the wage rate and ________ employment
A) raise; increase B) raise; decrease C) lower; increase D) lower; decrease