Although accounts in commercial banks are covered by government insurance, accounts in other financial institutions are not
If the government decides to bail out these other types of financial institutions during times of a financial crisis, it risks increasing the level of ________ in the financial system. A) moral hazard
B) liquidity
C) asset deflation
D) insolvency
A
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If a country's working-age population declines and its wealth increases, then the labor supply curve
A) shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population. B) shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population. C) shifts to the left. D) shifts to the right.
Refer to the indifference curve in Figure 3.3. Which of the following statements is correct?
A) This individual receives no satisfaction from Good A. B) This individual receives no satisfaction from Good B. C) This individual will only consume A and B in fixed proportions. D) none of the above