Because the seller of a used car has more information than the buyer:
A. the problem of bargaining imbalance occurs.
B. the problem of adverse selection occurs.
C. the problem of information overload occurs.
D. the problem of moral hazard occurs.
Answer: B
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Money functions as a(n)
A) medium of exchange. B) unit of account. C) store of value. D) all of the above.
One implication of the Condorcet paradox is
a. that the order in which things are voted on can affect the result. b. that the order in which things are voted on is irrelevant. c. that you do not want to be in charge of arranging which items are voted upon first. d. that when there are only two items being voted on the order matters.
The major economic effect of Medicare subsidies is
A. that the number of physicians has decreased since compensation is low. B. to lower the price of medical services and reduce the quantity demanded. C. to increase the price of medical services and increase the quantity demanded. D. to increase the price of medical services and reduce the quantity demanded.
You have a retirement account in a bank that has failed. The balance in your account is $330,000. Does it make a difference to you if FDIC uses the payoff method or the purchase-and-assumption method for resolving this insolvency? Explain.
What will be an ideal response?