Answer the following statements true (T) or false (F)
1) Each time a manager changes the conditions of a sale, they must consider the problem of adverse selection.
2) The lemons problem is an extreme case of moral hazard.
3) A well-known company's trademark is an example of a signal.
4) In general, moral hazard occurs at the time of the transaction and adverse selection occurs after the participants have already entered into the contract or agreement.
5) The incentive for a cost-plus-award-fee contract are less specific than a cost-plus-incentive-fee contract.
1) TRUE
2) FALSE
3) TRUE
4) FALSE
5) TRUE
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Human resource
What will be an ideal response?
Last year, the real per capita GDP of Country A was $32,000 and that of Country B was $25,000. Based on this information, what can we conclude about the standard of living for a typical inhabitant in each of these countries?
a. The standards of living for the typical inhabitants of these two countries cannot be determined without more data. b. The standards of living for the typical inhabitants of these two countries are roughly equivalent. c. A typical inhabitant of Country B has a higher standard of living than a typical inhabitant of Country A. d. A typical inhabitant of Country A has a higher standard of living than a typical inhabitant of Country B.
Nominal GDP is another term for
A. current dollar GDP. B. constant dollar GDP. C. adjusted dollar GDP. D. relative value GDP.
Interbank trading is:
a. a monopoly business in the United States. b. controlled by just 10 banks. c. a state-mandated business. d. a highly competitive market, with hundreds of banks offering services.