What are some of the criticisms that have been levied on the World Bank and the International Monetary Fund concerning adverse selection and moral hazard?
What will be an ideal response?
The World Bank and International Monetary Fund usually place very loose conditions on loans and this increases adverse selection problems. Some economists argue that the private lenders and investors assume that the World Bank and International Monetary Fund will back up nations and will therefore lower their standards and make loans to less creditworthy nations. This contributes to international financial crises.
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A change in any of the ceteris paribus conditions for demand leads to a
A) a good going from an inferior good to a normal good. B) movement along the demand curve. C) shift of the demand curve. D) change in supply.
Which of the following is a feature of an M-Form organization?
a. divisions have difficulty responding to changes in customer demand b. it is easier to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained
Cyrus McCormick and Eli Whitney were important in the technology of
A. steel. B. automobiles. C. agriculture. D. oil.
Some policy makers have suggested that mandatory health insurance coverage would:
A. overcome adverse selection in the market for health insurance. B. help to reduce the cost of health care. C. keep premiums lower than if healthy people could opt out. D. All of these statements are true.