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The concern of an auto insurer that insured drivers will not be as careful is due to the problem of:
A. adverse selection.
B. moral hazard.
C. economies of scale.
D. credit rationing.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 100 bunches of bananas. In the two-person economy that George and John set up, fish sell for 3 clamshells each, boars sell ..
A survey of economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following.
Assume that a nation faces a BOP deficit with high unemployment what exchange-rate adjustment can be made to resolve these problems? What if the nation experiences a BOP surplus with inflation?
Suppose the jeans industry is an oligopoly in which each firm sells its own distinctive brand of jeans, and each firm believes its rivals will not follow its price increases but will follow its price cuts. Draw and explain the demand curve facing eac..
which cumulative expenditures are increased. Raising taxes also government expenditure by the same amount such which cumulative provide is decreased also cumulative demand is increased.
q.find true or false or uncertain and explain why?1. tfu suppose that at an initial cost of 1000 a homeowner can
Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk? Policymakers have studied the effects of the price ceiling carefully, and recognize that the price ceiling is advantageous for society..
Quantity, whole revenue and profit when company charges different price in each market and exploits its total profit.
Draw the complete Solow growth model, identify equilibrium and label completely and correctly. Now suppose that there is a negative shock to total factor productivity. Draw the implications of this change on your graph. Identify the changes to per ca..
Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or l..
Opportunity cost is defined:
A person who paid $10 for an umbrella in the U.S. sees the exact same umbrella in a store in London, England for 6 British pounds. If the person could expect the real exchange rate to be 1 U.S. umbrella per 1 English umbrella, then the person could i..
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