If depository insurance exists, bank managers may make riskier loans than they would have otherwise, which is an example of
A) adverse selection. B) regulatory lag.
C) irrational behavior. D) moral hazard.
D
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Which of the following will not cause a movement along the supply curve?
a. Changes in the sellers' expectations. b. Increases in taxes per unit of output. c. Advances in technology. d. All of these.
Determine whether each of the following transactions will be counted in the 2005 GDP of the United States. If the transaction is counted, identify which expenditure component (personal consumption, gross investment, government consumption and gross investment, or net exports) will be affected
a. Norm, a frequent visitor to a local bar, purchases a Budweiser beer. (Budweiser beer is domestically produced.) b. The owner of the local bar purchases a new domestically made cooler unit in which to store his beer. c. Carla, a U.S. foreign exchange student, works her way through college in Germany as a waitress in a bar. d. On her night off, Carla purchases a Budweiser beer for her friend in the German bar.
What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?
a. The demand for gasoline will increase. b. The demand for gasoline will decrease. c. The demand for gasoline will be unaffected. d. The supply of gasoline will increase.
If the price of cotton used in making blue jeans increases, which of the following will occur?
A) There will be a movement along an unchanged supply curve for jeans. B) The supply curve for jeans will shift rightward. C) The supply curve for jeans will shift leftward. D) There will be a rightward shift in the supply curve for jeans, followed by a movement along the supply curve.