Why does a change in GDP affect unit costs and the price level?
a. as GDP increases, productivity increases.
b. as GDP increases the price of non-labor inputs increases and the nominal wage tends to increase.
c. as GDP decreases, there are efficient gains
d. as GDP increases, economies of scale allow for lower unit costs.
e. as GDP increases the price of non-labor inputs decreases and the nominal wage tends to increase.
B
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If you buy an insurance policy with a low deductible and no co-payments, you would end up paying
a. A higher premium b. A lower premium c. The premium of a low risk individual d. Both B&C
Alan puts $20,000 in an uninsured savings account at the Boston National Bank. Susie borrows $20,000 from the Boston National Bank, flies to a Central African country, and is never heard from again. Which of the following is true in this case? a. Alan will lose her $20,000
b. Alan will lose her $20,000 if she and Norma are related. c. Alan will lose her $20,000 if the First National Bank makes all of its loans to people who run off to South Pacific islands. d. Alan will not lose her $20,000 no matter what happens to the First National Bank. e. Alan will not lose her $20,000 unless the Fed fails