Question

QUESTION 37

1. ​ Health insurance is subject to

   	a.	​ moral hazard problems but not asymmetric information problems
   	b.	​ Asymmetric information problems but not moral hazard problems
   	c.	​ Both asymmetric information problems and moral hazard problems
   	d.	​ Neither asymmetric information problems nor moral hazard problems

QUESTION 38

1. ​ A price index can fall from one year to the next:

   	a.	​ even when nominal GDP falls.
   	b.	​ even when real GDP falls.
   	c.	​ even when some individual good's prices rise.
   	d.	​ in any of the above circumstances.

QUESTION 42

1. ​ At an equilibrium price:

   	a.	​ quantity demanded exceeds quantity supplied.
   	b.	​ quantity demanded equals quantity supplied.
   	c.	​ quantity demanded is less than quantity supplied.
   	d.	​ there is no scarcity.

QUESTION 44

1. ​ Expansionary fiscal policy, other things being equal, will tend to:

   	a.	​ increase interest rates.
   	b.	​ increase investment.
   	c.	​ increase net exports.
   	d.	​ all of the above

QUESTION 48

1. A reserve requirement of 40 percent would mean that each dollar of reserves could support ____ of demand deposits.

   	a.	​ $0.40
   	b.	​ $4.00
   	c.	​ $2.50
   	d.	​ $1.60

Answer 1

37 C both are in operation, as assyemtric infornainfon results in difficulty of pricing and moral hazard results as the insured person takes more risks.

38 D price index fall means decrease innprice of basket of goods, so ideally real gdp should rise, but consider stagflation if fall in nominal gdp is more than fall in price then real gdp may fall

42 A clearing of market

44 A

48 B