As a result, of adverse selection problems in the fire insurance market, it is likely that over time
A. fewer low-risk and high-risk people will be insured.
B. fewer high-risk people will be insured.
C. fewer low-risk people will be insured.
D. more low-risk people will be insured.
Answer: C
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X is exports, M is imports, T is net taxes, G is government expenditure, C is consumption expenditure, S is saving, and I is investment. The government sector balance is equal to
A) T - G. B) C + S + T. C) S - I. D) X - M.
If the Kenyan nominal exchange rate declines, and prices are unchanged in Kenya and abroad, then the Kenyan real exchange rate
a. does not change. b. rises. c. declines d. None of the above is necessarily correct.
The richest fifth of U.S. households get nearly half of all U.S. income.
Answer the following statement true (T) or false (F)
Economists observed the following growth rates in the fourth quarter of 1995: real GDP = 2.8 percent; M1 = 7.8 percent; GDP deflator = 2.2 percent. Given this data, the growth of nominal GDP was approximately
A. 12.8 percent. B. 10.0 percent. C. 5.6 percent. D. 5.0 percent. E. 0.6 percent.