Explain why the FDIC is following a "too-big-to-fail" policy of fully protecting all depositors at the largest banks
What will be an ideal response?
A tricky question. The FDIC does that although, officially, it still applies only to the $100,000 limit. Probably, the idea is that the cost to one depositor is unbearable relative to the small cost we all need to pay as a collective. Also, there are the issues of political pressure and avoiding blaming the government for mismanaging the safe guards.
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Which of the following is a "free" good?
A) Elderly health care, which is covered by Medicare B) Health care for the poor, which is covered by Medicaid C) Higher education in Georgia, which is paid for by lottery revenue D) All of the above. E) None of the above.
The short-run Phillips curve suggests that ____ rates of unemployment can be traded off for ____ rates of inflation
a. lower; higher b. greater; relatively high c. less; relatively low d. less; relatively high