Government mandating that every driver have a minimum amount of car insurance addresses the problem of:
A. illegal screening.
B. statistical discrimination.
C. moral hazard.
D. adverse selection.
Answer: D
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Expansionary monetary policy causes what?
a. a decrease in money supply b. an increase in interest rate c. a decrease in interest rate d. fewer loans to be initiated
The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. M2 money supply to rise.
Suppose a firm is considering producing zero units of output. We call this shutting down in the short run and exiting an industry in the long run
a. True b. False Indicate whether the statement is true or false
Efficiency-wage theory suggests that paying
a. low wages might be profitable because they raise the efficiency of a firm's workers. b. low wages might be profitable because they lower the efficiency of a firm's workers. c. high wages might be profitable because they raise the efficiency of a firm's workers. d. high wages might be profitable because they lower the efficiency of a firm's workers.