You are on a vacation in a foreign country. Because it is your first visit to the country, you do not know much about the tourist spots. So you decide to ask the manager of the hotel regarding the popular tourist places
He tells you that there is a waterfall and a beautiful park close to the hotel that you can visit. You are wondering which place to go to when you overhear some of the tourists planning a trek to one of the falls. You decide to join them. This is an example of a(n) ________. A) moral hazard
B) adverse selection
C) pecuniary externality
D) information cascade
D
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Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy
a. b and d b. macro; micro c. positive; normative d. normative; positive
The writing of a $1,000 check that is drawn on Bank A and deposited in Bank B
A. increases the money supply initially by $1,000. B. reduces total reserves of Bank A by $1,000 and increases the total reserves of Bank B by the same amount. C. reduces the required reserves of Bank A by $1,000 and increases the required reserves of Bank B by the same amount. D. reduces the excess reserves of Bank A by $1,000 and increases the excess reserves of Bank B by the same amount.