One difference between moral hazard and adverse selection is
a. Adverse selection has to do with unobservable characteristics of individuals
b. Adverse selection has to do with unobservable actions of individuals
c. Adverse selection is when individuals most appropriate for positions are most likely to apply for them
d. Adverse selection is when you choose the wrong answer on a test
a
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Special interests influence tax policy at all levels of government, but ______
a. they are most effective at the local level b. they are most effective at the state level c. they are most effective at the federal level d. they are equally effective at all levels of government
According to the real-balance effect, an increase in the price level will
A) leave total planned real expenditures unchanged since the price level of all goods has increased. B) decrease total planned real expenditures because of an increase in interest rates. C) lead to a corresponding increase in total planned real expenditures since businesses are now earning higher profits. D) decrease total planned real expenditures as a result of a decrease in the real value of money balances.
Bob's new startup goes public and sells shares of future profits. Bob's startup is best described as a a. saver or as a supplier of funds
b. saver or as a demander of funds. c. borrower or as a supplier of funds. d. borrower or as a demander of funds.
An increase in bond prices accompanies a decrease in interest rates.
a. true b. false