Requiring a large net worth on the part of an applicant is one way lenders treat the problem of:
A. adverse selection.
B. moral hazard.
C. free-riders.
D. the Lemons market.
Answer: B
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Which of the following statements is false?
A. Externalities can sometimes be internalized through individual voluntary agreements. B. It would be a relatively easy matter to establish property rights in the air. C. Persuasion can be used in some cases to internalize externalities. D. Taxes and subsidies are sometimes used as corrective devices for market failures.
Which of the following is an example of a nonrenewable resource?
a. corn b. oil c. livestock d. All of the above are correct.
According to the text, which currency is expected to experience the most change in the upcoming years?
A) yen B) yuan C) euro D) U.S. dollar
A firm operating with diminishing total returns cannot be profit maximizing
Indicate whether the statement is true or false