Asymmetric information before a transaction takes place generates the problem of
A. adverse selection.
B. flawed bank regulation.
C. intermediation.
D. bank runs.
A. adverse selection.
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Assume the demand for sugar decreases and the supply of sugar increases. Which of the following outcomes is certain to occur?
A. The equilibrium quantity of sugar will rise. B. The equilibrium price of sugar will rise. C. The equilibrium quantity of sugar will fall. D. The equilibrium price of sugar will fall.
A perfectly elastic demand curve:
A) is parallel to the price axis. B) is parallel to the quantity axis. C) slopes upward. D) slopes downward.
Summarize the assumptions that underlie Reverend Thomas Malthus’s model and contrast what Malthus expected to happen with what has actually occurred since the nineteenth century.
What will be an ideal response?
Which of the following is false?
A. The federal government's fiscal year begins on October 1. B. The largest federal government purchase of final goods and services is Social Security. C. The corporate income tax is a direct tax.