The problem of moral hazard helps explain why the International Monetary Fund _______ the Asian countries during their 1997-1998 crisis and _______ Argentina during its 20011-2002 crisis
a. helped; abandoned.
b. abandoned; helped.
c. helped; helped
d. abandoned; abandoned.
e. none of the above.
A
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The production possibilities curve depicts the combinations of two goods that can be
a. viewed as creating international specialization, one country producing one good, the other a second good b. produced with a given level of technology and set of resources c. consumed with a given quantity of resources and level of technology d. produced with varying levels of unemployment of resources e. produced with varying levels of unemployment and underemployment of resources
In terms of market failure, what is meant by monopoly?
a. The government holds the power to control prices, lower unemployment, or reduce inflation. b. Most of the resources in an economy are controlled by CEOs and other business executives. c. Technological change spurs significant growth in one economic sector while leaving others unchanged. d. One seller dominates a market and excludes others from participating in mutually beneficial exchange.