Adverse selection:
A. results from unobserved characteristics of people or commodities.
B. is about the actions of people.
C. occurs after the parties have entered into an agreement.
D. All of these statements are true.
A. results from unobserved characteristics of people or commodities.
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Money market mutual funds are ________ the M1 measure of money and ________ the M2 measure of money.
A. included in; included in B. included in; excluded from C. excluded from; included in D. excluded from; excluded from
Inflation results
(a) when the price of one good or service increases. (b) when too much money is chasing too few goods. (c) when prices, on average, decrease across the economy. (d) when banks decrease lending.
In the United States, the distribution of wealth
A) is the same as the distribution of income. B) is more unequal than the distribution of income. C) is more equal than the distribution of income. D) is equal for all families.
Under rate-of-return regulation, natural monopolies must use
A) marginal cost pricing. B) average cost pricing. C) efficient pricing. D) monopoly pricing.