The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called
A. adverse selection.
B. inequitable financing.
C. moral hazard.
D. asymmetric information.
Answer: C
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The functions of money are to serve as a
A. resource allocator, a method for accounting, and a means of income distribution. B. determinant of consumption, investment, and government spending. C. unit of account, a store of value, and a medium of exchange. D. factor of production, exchange, and aggregate supply.
In part, a country's current account measures
A) its current debt as opposed to its long-term debt. B) borrowing and lending activity between the country's residents and foreigners. C) net increases and decreases in a country's holdings of foreign currency. D) receipts from the sale of goods and services to foreigners and payments for goods and services bought from foreigners.
Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $36, the efficient quantity of satellites is
A) 1. B) 2. C) 3. D) 4.
What is the difference between accounting profit and economic profit?
What will be an ideal response?