If knowledge possessed by one party in a financial transaction is not known to the other party, ________ exists
A) fraud B) asymmetric information
C) disintermediation D) no financial intermediation
B
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The measurement of GDP handles underground production by
A) including the amount produced in this sector of the economy in exactly the same way that all other production is included. B) omitting it because underground production is unreported to the government by the people involved. C) adding it at fixed prices that change only infrequently. D) adding an estimate of it because it is difficult to precisely measure underground production. E) omitting it because, being illegal, it has no effect on the nation's total production.
What is the Coase Theorem? Under what conditions will the Coase Theorem break down?
What will be an ideal response?
Free-riding by online retailers results in a(n) ________ amount of product-specific services, which ________ harm the manufacturer.
A) optimal; does B) sub-optimal; does C) sub-optimal; does not D) optimal; does not
Fiscal policy is concerned with:
a. encouraging businesses to invest. b. regulation of net exports. c. changes in government spending and/or tax revenues. d. expanding and contracting the money supply.