In the circular flow model, profits are considered to be
A) a cost of doing business.
B) equal to zero, or else the circular flow would be out of balance.
C) a subtraction from the Gross Domestic Product (GDP).
D) a form of interest payment.
A
Economics
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"As part of the financial crisis bailout plan in 2008, the Federal Reserve should not bail out banks that made risky loans." This is an example of
A) a positive statement. B) the Federal Reserve taking actions that are not at the margin. C) opportunity costs. D) a normative statement.
Economics
Define moral hazard and adverse selection in the context of health insurance markets. Make sure to discuss why they are problems for health insurance markets
What will be an ideal response?
Economics