Banks face the problem of ________ in loan markets because bad credit risks are the ones most likely to seek bank loans
A) adverse selection
B) moral hazard
C) moral suasion
D) intentional fraud
A
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Tiebout local public good provision is more easily implemented than a Lindahl equilibrium -- because people know each other's tastes locally and can more easily come up with the right way to divide the cost for public goods.
Answer the following statement true (T) or false (F)
Refer to Figure 2-8. Suppose Vidalia is currently producing 120 dozen roses per period. How many orchids is it also producing, assuming that resources are fully utilized?
A) 20 dozen orchids B) 32 dozen orchids C) 44 dozen orchids D) 68 dozen orchids
Recent estimates put the size of the underground economy in the United States at ________ of measured GDP
A) 2 percent B) 8 percent C) 13 percent D) over 50 percent
The costs of an economic activity borne by the producers are:
a. always less than social costs. b. the full resource costs of an economic activity. c. private costs. d. all of these.