Bad risks may be the most willing to pay high interest rates and thus get loans. This describes an example of
a. symmetrical information
b. adverse selection
c. natural selection
d. moral hazard
e. the winner's curse
B
You might also like to view...
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
"Government should act to reduce poverty levels."
A) This statement is a normative statement. B) This statement is a positive statement. C) This statement is an example of the fallacy of composition. D) This statement is an example of the post hoc fallacy.
Deficits are a burden on future generations if they
A. cause national saving to fall. B. are not used for government capital formation. C. are always a primary government deficit. D. cause higher rates of inflation to occur.
Over time, the general movement in the United States has been toward
A. relatively more free trade. B. higher tariffs and stricter import quotas. C. managed trade. D. complete elimination of tariffs, import quotas, and export subsidies.