All of the following are problems cited by Warren Buffet as problems with derivatives not traded on exchanges EXCEPT
A) they are thinly traded which makes it difficult to determine their value.
B) firms do not set aside reserves against potential losses.
C) they involve substantial counterparty risk.
D) they were not flexible enough due to lack of standardization.
D
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The power of the U.S. government to seize private property or exercise the right of eminent domain was an English innovation
Indicate whether the statement is true or false
Suppose the wage rate in a certain industry rises, and firms hire fewer workers. The best explanation of this is that labor:
A. demand fell. B. demand increased. C. supply fell. D. supply increased.
In some cases, social regulation may alter individuals' behavior. For example, there is evidence to indicate that as more automobile safety regulations have been introduced, more individuals have begun to drive recklessly. This phenomenon is known as
A) the feedback effect. B) the share-the-gains effect. C) the share-the-pains effect. D) the capture effect.
Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) shift the short-run aggregate supply curve to the left. B) shift the short-run aggregate supply curve to the right. C) move the economy up along a stationary short-run aggregate supply curve. D) move the economy down along a stationary short-run aggregate supply curve.