A travel agency offers a money-back guarantee for vacationers taking their first cruise in case they do not enjoy the experience. This guarantee is an example of
signaling.
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Who among the following list of people is an early 20th century economist from Yale University who wrote the book The Theory of Interest?
A) Gustav Cassel B) Irving Fisher C) David Ricardo D) Paul Krugman E) Israel Kirzner
Define moral hazard and adverse selection in the context of health insurance markets. Make sure to discuss why they are problems for health insurance markets
What will be an ideal response?
When the exchange rate fluctuates around a fixed central target, allowing for a moderate amount of fluctuation, while tying the currency to the target central rate, the exchange rate is under a(n):
a. horizontal band. b. crawling peg. c. managed float. d. independent float. e. currency board.
The best example of a public good is
A. education. B. national defense. C. automobiles. D. electricity.