The tendency for high-risk projects to be overrepresented among investors of projects is
A. financial intermediation.
B. asymmetric information.
C. adverse selection.
D. moral hazard.
Answer: C
You might also like to view...
Assume the population growth rate is 2 percent and the real GDP growth rate is 5 percent. The change in standard of living, as measured by the growth rate in real GDP per person, is
A) 7 percent. B) 2.5 percent. C) 5 percent. D) 3 percent. E) -3 percent.
Labor force participation is similar for males ages 25-64 with different levels of education completed
Indicate whether the statement is true or false
Total output per worker is also called:
A. total product. B. average product. C. variable product. D. marginal product.
To pay piece rates in order to elicit effort, it must be the case that
A. the firm does not want to maximize profits. B. workers refuse to accept a time rate. C. firms cannot monitor individual worker effort. D. the firm can monitor individual worker output. E. the production process relies on group work.