A patient has a medical condition, but he doesn't know what it is. The physician he sees diagnoses his illness correctly. What term applies to this situation?
a. Principle-agent problem.
b. Rational ignorance.
c. Externalities.
d. Asymmetric information
e. The substitution effect.
D
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Foreign aid often becomes a source of discretionary funds that benefit poor people in developing countries and not the countries' leaders
a. True b. False
Dairy farmers hold an annual Capitol Hill ice cream social that provides free ice cream for congressional staffers during which time representatives from the industry discuss issues with, and provide information to, congressional staff. This is an example of
a. logrolling. b. rent seeking. c. pork-barrel legislation. d. the shortsightedness effect.
Answer the following questions true (T) or false (F)
1. Agricultural economics is an applied social science. 2. The U.S. economy represents a mixture of capitalism and socialism. 3. The U.S. economy represents a purely capitalistic system.
Which of the following is NOT a reason that interest rates remained low despite high budget deficits following the financial crisis?
A) increased demand for U.S. government bonds B) the perceived riskiness of alternative investments such as stocks C) low interest rates on CDs and similar short-term assets D) increases in expected inflation