When a currency is overvalued, international reserves ________ and the country has a balance-of-payments ________.
A. increase; deficit
B. decrease; surplus
C. increase; surplus
D. decrease; deficit
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. Adverse selection can cause insurance companies to limit the amount of insurance they provide to people who are "poor risks." 2. Most economists believe adverse selection played no role in the 2008 financial crisis. 3. In the moral hazard problem, people incur additional risks as a result of being insured. 4. In the principal-agent problem, the principal is the person performing work and the agent is the one for whom the work is being done. 5. If employers had to pay higher than equilibrium wages to their workers, then workers would be better off but employers would be worse off.
Consistent with the mercantilist theory, the colonies had
(a) a trade deficit with England. (b) a trade surplus with England. (c) a balance of trade with England. (d) about an equal number of annual trade deficits and surpluses over the years.
What concept does economics primarily deal with?
a) scarcity b) poverty c) change d) power
For you to be considered not in the labor force, you can be
A. a full-time volunteer. B. a full-time retiree. C. a full-time student. D. any of the above.