adverse selection
What will be an ideal response?
situation where individuals have hidden characteristics and in which a selection process results in a pool of individuals with undesirable characteristics
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What are transactions costs? Why do transactions costs create difficulties in finding a private solution to the problem of pollution?
What will be an ideal response?
A Phillips curve shows the relationship between the inflation rate and the:
a. wage rate. b. unemployment rate. c. real GDP growth rate. d. population growth rate.
If Target were to merge with Wal-Mart, this would be referred to as a(n)
A) horizontal merger. B) vertical merger. C) conglomerate merger. D) anti-competitive merger.
As the interest rate rises, the present value of a given perpetual stream of income
A) increases. B) decreases. C) does not change. D) approaches infinity.