The term that is used to refer to a situation in which one party to a transaction has more or better information than the other party is
A) adverse selection.
B) asymmetric information.
C) moral hazard.
D) deceptive trade practices.
B
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For a single-price monopoly, price is
A) greater than marginal revenue. B) one half of marginal revenue. C) equal to marginal revenue. D) unrelated to marginal revenue. E) always less than average total cost when the firm maximizes its profit.
The level of aggregate output and income where there is a balance between spending and production decisions and where the economy moves toward is called:
A) disequilibrium level of output and income. B) equilibrium level of output and income. C) disequilibrium level of employment. D) none of the above.
Part of the surplus lost to market participants when a tax is imposed is:
A. transferred to others who are affected. B. transferred to the government in revenues. C. redistributed from seller to buyer. D. redistributed from buyer to seller.
Are funds available on a credit card included in a definition of the money supply?
a. Yes, because these funds can be used to pay for goods and services. b. Yes, because these funds are included in M2. c. No, because these funds are hard to measure total credit card spending. d. No, because these funds are not a store of value.