The outcome of the state of nature effects the payoff to the agent under a
A) fixed-fee contract.
B) hire contract.
C) contingent contract.
D) All of the above.
C
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The United States is a ________ nation because it pays ________ in interest to the rest of the world than it receives in ________ from the rest of the world
A) creditor; more; interest B) debtor; more; interest C) debtor; less; cash D) debtor; more; cash E) debtor; less; interest
Which of the following was a lesson from the 2007-2009 financial crisis?
a. The financial system needed more leverage in order to operate. b. The job of stabilizing the economy should be assigned exclusively to monetary policy. c. Monetary policy is finished once the Fed reduces the federal funds rate to zero. d. The business cycle still exists.
When a tax is placed on the buyers of cell phones, the size of the cell phone market
a. and the effective price received by sellers both decrease. b. decreases, but the effective price received by sellers increases. c. increases, but the effective price received by sellers decreases. d. and the effective price received by sellers both increase.
Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.