The Occupational Safety and Health Administration (OSHA) attempts to stop safety violations in business through inspections and fines. Though workers are supposed to earn a premium wage for working in more risky environment, the OSHA inspections may be a good idea because
A. employees may already understand the risks that they are exposed to on the job.
B. there are never any societal costs or externalities to dangerous working conditions.
C. employees might not have good information about the level of danger.
D. inspections and fines may raise the cost of production significantly.
Answer: C
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Arbitrage is:
a. capital controls. b. interest rate management by the central bank. c. exploiting profit opportunities in the market resulting from price differences. d. investing in junk bonds or businesses that are not ethical.
Which of the following was true of the United States before 1970? a. The government was not responsible for promoting employment, output, and purchasing power. b. Most macroeconomic instability was caused by changes in international oil prices
c. Most macroeconomic instability was caused by shifts of aggregate demand. d. Most macroeconomic instability was caused by the depreciation of the dollar. e. The government was responsible for using monetary policy to correct a depression.