An automobile finance company faces an adverse selection problem if borrowers
A. with a greater chance of defaulting on their car loans get loans from the lender.
B. choose to get their car loans from a source other than the finance company.
C. choose a 5-year loan as opposed to a 2-year loan.
D. with no chance of defaulting on their car loans get loans from the lender.
Answer: A
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You are the new vice president in charge of advertising at Taco Bell. In your upcoming advertising campaign, you plan to degrade the fast food competitor whose product is the closest substitute for Taco Bell's tacos
That would be the fast food chain whose cross elasticity of demand with your tacos is equal to A) negative 2.11. B) negative 1.75. C) positive 1.55. D) positive 1.00.
What is the equilibrium price of a good or service?
What will be an ideal response?
For which of the following goods is the marginal benefit of search likely to be greatest?
a. a toaster b. an apple c. a radio d. a tube of toothpaste e. a color TV
The demand curve shows the relationship between
A. the demand and supply schedules. B. demand and supply equilibrium. C. price and quantity demanded. D. None of these choices are correct.