When lenders are unable to get good information about the worthiness of a project the lender has the problem of
A) adverse selection. B) moral selection. C) moral hazard. D) adverse hazard.
A
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A speculator who feels strongly that short rates will be rising over the next few years might want to be a __________ payer in a swap contract; if she is wrong there is __________ downside risk
A) fixed-rate; no B) fixed-rate; considerable C) floating-rate; no D) floating-rate; considerable
Monopolists can dictate the price or the quantity of the product they produce, but not both.
Answer the following statement true (T) or false (F)
How many people are employed if the labor force participation rate is 60%, there are 3 million people unemployed, and there are 30 million people not in the labor force?
A) 54 million B) 48 million C) 42 million D) 30 million
Specialization of labor refers to the
a. use of more skilled versus unskilled labor b. division of labor c. opportunity costs of using labor d. law of increasing costs associated with labor e. comparative advantage of labor-using economies