The U.S. government establishing a policy that it will bail out troubled financial institutions and a resulting increase in the number of bank failures is an example of:
a. the moral hazard problem
b. the free rider problem.
c. the adverse selection problem.
d. the "lemon" problem.
a
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Global capital flows have completely broken the link between domestic savings and domestic investment
Indicate whether the statement is true or false
The Argentinian crisis of 2001 was brought about by:
A. exchange rate crisis. B. debt crisis. C. excessive loss of national resources. D. None of these statements is true.
Sam owns a firm that produces tomatoes in a purely competitive market. The firm's demand curve is:
A. upsloping to the right. B. a horizontal line. C. a vertical line. D. downsloping to the right.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.