Two people are involved in a borrower/lender situation, and one person has superior knowledge of its own current and future prospects over the other person. This is known as
A) symmetric information. B) deceptive knowledge.
C) preventable information. D) asymmetric information.
D
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Patents provide a firm with a monopoly on a given product. What is the economic rationale for granting patents?
What will be an ideal response?
If stock prices are expected to drop dramatically, then, other things equal, the demand for stocks will ________ and that of Treasury bills will ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
A price ceiling set below the market clearing price will tend to cause which of the following?
A) a surplus B) a shortage C) an increase in demand D) a reduction in supply
The official poverty-line income is adjusted annually for _____
a. income taxes b. unemployment compensation benefits c. house rents d. inflation e. increases in health-care costs