The risk that a borrower has more information about their previous behavior than a potential lender is known as the ________
A) moral hazard problem
B) adverse selection problem
C) time-space discontinuity
D) tertiary behavior problem
B
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If at a price of $10, a vendor sells 5 units of a product and at a price of $8, 6 units are sold, then, using the midpoint formula, the demand for this good is inelastic
Indicate whether the statement is true or false
Refer to the graph shown. If a firm operating as if it were faced with a kinked demand curve believes that if it lowers price from P2 to P4, its rival will match the price cut, then:
A. D1 is the relevant demand curve. B. the demand curve used by the firm for decision making is highly elastic. C. it probably won't lower price, since the percentage decline in price will exceed the percentage increase in quantity sold. D. it probably will lower price, since doing so will increase sales.
If the multiplier is 10, the MPC is
A. 0. B. .1. C. .5. D. .9.
Which of the following is not a resource as the term is used by economists?
A. money B. land C. labor D. buildings