Tag: Economics – Others

True or false: The consumer’s utility maximization problem is one of the few unconstrained maximization problems in economics.
True
False

Which type of experiment colfects data in the real world, without manipulating the subject of study?experimentalanecdotaltheoreticalobservationalrandomized

Financial incentives for managed care organizations promote their cooperation with public health initiatives that make their customers healthier.
True
False

A depository institution faced with withdrawal of a large quantity of demand deposits would have to Blank______ or Blank______ to pay the entire amount.

In an exponential utility function, a larger risk tolerance indicates the decision maker ismore risk averse.less risk averse.risk neutral.more optimistic.
ismore risk averse.
less risk averse.
risk neutral.
more optimistic.

short run keynesian model with flexiable wages and adaptive expectations. Taxes decline. Explain and diagratically represnt what happens to P,Y,W, and N.
Key intuition
A decline in taxes raises disposable income, so consumption and aggregate demand (AD) increase. Diagrammatically this is an outward (rightward) shift of the AD curve. In the short run this raises output (Y) and the price level (P). With flexible nominal wages and adaptive expectations, nominal wages (W) begin to rise as firms bid for labor and workers update wage demands; employment (N) rises initially with the expansion in output. Over time, as expectations adapt, rising expected prices feed into wage-setting and the short-run aggregate supply (SRAS) shifts left, pushing prices higher and moving output back toward its natural level while wages remain higher.
Short-run (immediate) effects
P (price level): rises
Y (real output): rises
W (nominal wages): begin to rise (may adjust gradually)
N (employment): rises
Medium run (after adaptive expectations update)
SRAS shifts left as expected prices/wages rise.
P: rises further (higher than initial short-run level).
Y: moves back toward the natural (potential) output.
W: higher (nominal wages have adjusted upward).
N: returns toward the natural rate of employment.
AD-AS diagram: AD₀ → AD₁; SRAS₀ → SRAS₁ as expectations adapt.

A(n) ◻ close is used to commit the prospect quickly by making reference to the timeliness of the pu true.
Multiple Choice
assumptive
presumptive
urgency
final

Moral hazard question
Moral hazard predicts that as the coinsurance rate increases, the demand for medical care becomes:
perfectly elastic
unitary elastic
less elastic
more elastic

What is the main barrier preventing Level IV inclusion principles?
corporate greedtack of national fundingcultural barrierspolarization of political belief

What is the hazardous substance in automobile exhaust that is also present in high concentrations in tobacco smoke?
Options: carbon monoxide; hydrocarbons; nicotine