Questions about employment history on a loan application are used to prevent
A) moral hazard.
B) adverse selection.
C) market signaling.
D) risk aversion.
B
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If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium,
A) GDP will be above potential GDP. B) aggregate demand will increase. C) GDP will be below potential GDP. D) GDP will be equal to potential GDP.
Once the federal funds rate is reduced to zero, conventional expansionary monetary policy is no longer an option
a. True b. False Indicate whether the statement is true or false
Suppose two companies, Macrosoft and Apricot, are considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). Which of the following statements is correct?
A. Apricot's dominant strategy is to develop a touch-screen t-shirt. B. Apricot's dominant strategy is to not develop a touch screen t-shift. C. Apricot does not have a dominant strategy. D. Apricot's dominant strategy is to develop a touch-screen t-shirt if Macrosoft does not.
Refer to the data provided in Table 11.3 below to answer the following question(s). Table 11.3ProjectTotal InvestmentExpected Rate of Return(dollars) (percentage)New computer for sales staff $250,00011Remodel for distribution center$200,000 9On-site day care center $100,000 5Employee fitness center$50,000 4Refer to Table 11.3. If the interest rate is 10%, Blackstar Drone Manufacturing's total investment would be
A. $0. B. $50,000. C. $250,000. D. $350,000.