When new professors are hired, their job performance is monitored closely. If they meet their institution's standards, they will eventually receive tenure. After receiving tenure, professors' job performance is less closely monitored, and they become difficult to fire. Tenure thus creates
a. adverse selection.
b. a Condorcet paradox.
c. a screening problem.
d. a moral hazard problem.
d
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A notable and unique feature of the colonial monetary system was
a. the use of minted silver coins. b. the circulation of commodities as money. c. the use of a widely accepted paper currency. d. the development of checking accounts issued by private commercial banks.
The first law of demand states that
a. the quantity demanded increases as price falls b. the quantity demanded decreases as price falls c. the quantity demanded increases as price increases d. none of the above
Disclosure laws:
A. are an example of how government attempts to assert control over what we eat. B. can result in information overload. C. always help solve information asymmetry, but can cause other problems. D. All of these statements are true.
The crowding-out effect suggests that:
A. increases in government spending will close a recessionary expenditure gap. B. increases in government spending may raise the interest rate and thereby reduce investment. C. increases in consumption are always at the expense of saving. D. high taxes reduce both consumption and saving.