Asymmetric information before a transaction takes place generates the problem of
A. bank runs.
B. intermediation.
C. flawed bank regulation.
D. adverse selection.
Answer: D
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A call option is a contract
A. that gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B. that gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C. in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D. that gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
What country has often run trade surpluses near $100 billion per year since 1990?
a. Germany b. China c. India d. Japan
A Gini coefficient of one indicates
a. the richest 10 percent of the people control 90 percent of the economy's income b. the poorest 10 percent of the people control 1 percent of the economy's income c. 50 percent of the people control 50 percent of the income d. perfect income equality e. perfect income inequality
If the price of a candy bar increases from $1 to $1.50, the ____ will increase
a. producer surplus b. consumer surplus c. opportunity cost of producing a candy bar d. social marginal cost of producing a candy bar