Moral hazard is due to
A) hidden characteristics.
B) hidden actions.
C) symmetric information.
D) adverse selection.
B
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The money multiplier tends to be greater when
A) individuals hold less cash. B) individuals hold more cash. C) the reserve ratio increases. D) banks hold more excess reserves.
Marginal revenue is
a. total revenue minus total cost b. total revenue divided by quantity of output c. the change in total revenue divided by the change in output d. the change in total revenue divided by the change in the quantity of an input used e. economic profit
Changes in relative prices during inflationary periods usually lead to
A. decreases in real income. B. some people gaining real income. C. increases in the purchasing power of money. D. increases in real income.
If nominal GDP was $11,500 billion in 2003 and the price level in 2003 was 111.6, then real GDP would have been approximately
A. $9,750 billion. B. $9,795 billion. C. $10,305 billion. D. $10,485 billion.