The possibility that a borrower will break a promise made to the lender after the loan is made is one form of
A) the moral hazard problem.
B) the adverse selection problem.
C) outside collateral.
D) inside collateral.
A
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The benefit of a subsidy accrues mostly to consumers
A) in every instance. B) if Ed/Es is large. C) if Ed/Es is small. D) if Ed and Es are equal. E) in no instance.
Increased production, but not increased inflation, will result in higher:
a. nominal GDP. b. money GDP. c. real GDP. d. current dollar GDP.
The statutory incidence (or burden) of a tax refers to
a. the governmental agency responsible for collecting the tax. b. who actually bears the burden of a tax once changes in market prices are taken into account. c. the degree of progressiveness in the rate structure of the tax. d. who the tax is legally or statutorily imposed on.
Choosing to spend now instead of to save is an example of consumer ______.
a. confidence b. debt c. expectations d. preferences