What is adverse selection?
A) It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.
B) It refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.
C) It refers to the private, self-interested actions people that people pursue, which when taken collectively leads to a loss in economic surplus.
D) It refers to the actions people take before they enter into a transaction so as to mislead the other party to the transaction.
A
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Extreme global poverty is defined as ________
A) income of less than one dollar a day B) foreign debt in excess of 100% of GDP C) one percent of U.S. income D) one-fourth of U.S. income
If the money supply in the economy were at MS2, to engage in contractionary policy the Federal Reserve Bank would use open market operation to move money supply to:
A. MS4 B. it would stay at MS2 C. MS3 D. MS1
Pollution taxes are preferred to direct controls because they don't require a way of measuring pollutants produced
a. True b. False Indicate whether the statement is true or false
Changing from a barter economy to a money economy can reduce transaction costs
Indicate whether the statement is true or false