Information problems create inefficient outcomes in:
A)both the private and the public sectors.
B) the private sector but not the public sector.
C) the public sector but not the private sector.
D) neither the private nor the public sector.
A)both the private and the public sectors.
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The option to buy a company's stock at some future time at current prices is often given to CEOs
a. as an incentive to take actions that will raise the share price. b. because CEOs are often friends of those who hire them. c. as a means of discouraging the CEO from taking any risky actions. d. because this has become the custom of the business culture.
A key to analyzing subgame perfect equilibrium strategy in sequential games is
a. predictable behavior b. an explicit order of play for at least some participants c. information sets that are known with certainty d. credible threats clearly communicated e. randomness
Monetary theorists maintain that to eliminate the business cycle, it is necessary to eliminate
a. money. b. currency. c. bank creation of check able deposits. d. bank reserves.
"Value pricing" stresses the importance of product differentiation
Indicate whether the statement is true or false