You are on a vacation in a foreign country. Because it is your first visit to the country, you do not know much about the tourist spots. So you decide to ask the manager of the hotel regarding the popular tourist places
He tells you that there is a waterfall and a beautiful park close to the hotel that you can visit. You are wondering which place to go to when you overhear some of the tourists planning a trek to one of the falls. You decide to join them. This is an example of a(n) ________. A) moral hazard
B) adverse selection
C) pecuniary externality
D) information cascade
D
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Refer to Table 25-3. Consider the above simplified balance sheet for a bank. If the required reserve ratio is 10 percent, the bank can make a maximum loan of
A) $2,000. B) $5,000. C) $6,300. D) $45,000.
At the market output and price for a good whose production causes pollution:
a. pollution is eliminated. b. the marginal social cost of production exceeds the marginal social benefit of production c. the private cost of production equals the private benefit of production. d. the marginal social benefit of production equals the marginal social cost of production.
The amount of a good that is given up to produce another good is:
a. its dollar cost. b. its opportunity cost. c. its relative cost. d. its absolute cost. e. all of these.
Compared to the leader countries, the follower countries can grow at a faster rate because:
What will be an ideal response?