The fact that individuals whose credit worthiness is less than it appears to be are those who are most willing to borrow funds at any given interest rate is an example of
A. moral bonuses.
B. adverse selection.
C. symmetric information.
D. diverse origins.
Answer: B
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Which of the following will cause an increase in the quantity demanded of ice cream at an ice cream store?
a. The onset of summer brings about an increase in the temperature. b. The price of frozen yogurt that is sold at the store is reduced by 5 percent. c. A new ice cream flavor is introduced at the store. d. The store introduces a limited period offer of 20 percent off on the price of ice cream. e. The income of the store's consumers increases.
Total cost can be defined as:
A. the amount that an individual spends on all normal goods and services within a specified period of time. B. the amount that a firm spends on all inputs that go into producing a good or service. C. the amount that a firm receives from the sale of goods and services. D. None of these is correct.
In the 1970s and 1980s the U.S. dollar depreciated against the German mark and appreciated against the Italian lira because U.S. inflation was lower than in Germany but higher than in Italy
a. True b. False Indicate whether the statement is true or false
The reason that opportunity costs arise is that
A. people have unlimited wants. B. there are no alternative decisions that could be made. C. an economy relies on money to facilitate exchange of goods and services. D. resources are scarce.