Two types of asymmetric information that create problems for international investment are
A. adverse selection and moral selection.
B. adverse hazard and moral selection.
C. adverse selection and moral hazard.
D. adverse hazard and moral hazard.
Answer: C
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What is one reason a gambler might bet $1,000 that a sixteenth seed team will win the NCAA basketball tournament?
A) irrationality B) overconfidence C) exuberance D) gambler's fallacy
Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point d,
A) his MRS is larger than the trade-off offered by the market. B) he is willing to give up more chicken than he has to, given market prices. C) he is not maximizing his utility. D) All of the above.
Which of the following would be of particular interest to a microeconomist?
a. amount of fruit the typical household consumes b. nation's inflation rate c. nation's rate of unemployment d. budget of the national government e. growth rate of the economy
Distinguish between a command-and-control economic system and a price system
What will be an ideal response?