One result of asymmetric information in the market for bank loans is that
a. few loans are offered
b. few bad loans are made
c. more bad loans than good loans may be made
d. lenders benefit at the expense of borrowers
e. the interest on good loans will be higher than otherwise
C
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The higher the real wage rate, the higher the labor force participation rate
Indicate whether the statement is true or false
It is easier to sustain tacit collusion in an infinitely repeated game if:
A. the interest rate is lower. B. the present value of cheating is higher and the interest rate is lower. C. the present value of cheating is higher. D. there are more players in the game.
Earning a master's degree in Engineering is an example of
A. an investment in human capital. B. a Pareto good. C. a compensating differential. D. economic income.
The price paid for the use of money is called:
A. Commission B. Royalty C. Interest D. Rent