The specificity of the asset (or investment) leads to the possibility of:
A. opportunism.
B. prisoner's dilemma.
C. collusion.
D. None of the statements is correct.
Answer: A
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Why do economists like competitive markets?
A. Competitive markets result in optimal and efficient levels of production. B. Competitive markets result in lower levels of production. C. Competitive markets are the best way to allocate every good or service. D. Competitive markets result in high prices and profit for sellers.
When interest rates are lower, consumers and companies are able to borrow money cheaply in order to make major purchases. As a result, the demand for goods in an economy will generally
A) remain the same. B) increase. C) decrease. D) be minimally affected.
Which of the following does NOT describe a function of money?
A) unit of account B) barter C) medium of exchange D) store of value
Rising unemployment and decreased business confidence could be signs that the economy is at the start of a(n):
A. recession. B. boom. C. recovery. D. expansion.