Asymmetric information often makes it difficult to tell good from bad. This is a problem of
A) moral hazard.
B) negative externalities.
C) adverse selection.
D) moral hazard and not adverse selection.
C
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Which statement is false?
A. Our 2009 trade deficit with Japan was the highest deficit ever recorded with any one country. B. Our trading position with Japan is very much like a colony and a colonial power. C. Japan had an economic revival in the 1950s and 1960s largely by targeting the American consumer market. D. If we eliminated our trade deficits with Japan and China, we would still be running a trade deficit.
Firms that place their assets in the custody of a board of trustees is called a(n):
A. utility. B. oligopoly. C. trust. D. cartel.
The exchange rate value of a foreign currency is ________ in the short run by a rise in its expected future spot exchange rate value.
A. not affected B. lowered C. made volatile D. raised
How does the sample size affect the validity of an empirical argument? When is it acceptable to use only one example to disprove a statement?
What will be an ideal response?