________ makes designing efficient contracts costly.
A. Self-selection
B. Huge monitoring costs for the agent
C. Signaling
D. Huge monitoring costs for the principal
Answer: B
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In terms of wages for full-time employment, men make ________ more than what women make.
A. 1% B. 23% C. 5% D. 15%
In his book The Other Path, de Soto suggests that countries will grow more quickly if governments limit entrepreneurship.
Answer the following statement true (T) or false (F)
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
The fact that a higher standard of living tomorrow can only be achieved by sacrificing consumption today is an example of the:
A. principle of increasing opportunity costs. B. scarcity principle. C. equilibrium principle. D. principle of comparative advantage.