Refer to the scenario above. Which of the following problems arises in this scenario?
A) Low transaction costs
B) The free-rider problem
C) Moral hazard
D) A negative externality
D
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One of the difficulties of the government privatizing a common resource is:
A. compounded the more users there are. B. deciding which individuals will have to decrease their consumption. C. figuring out who owns what when many are using the resource. D. All of these statements are true.
A negative marginal utility implies negative total utility.
Answer the following statement true (T) or false (F)
Refer to the diagram of the market for money. The downward slope of the money demand curve D m is best explained in terms of the:
A. transactions demand for money.
B. direct or positive relationship between bond prices and interest rates.
C. asset demand for money.
D. wealth or real-balances effect.
If the current account balance is -$100 billion and the capital and financial account balance is $80 billion, then the official settlement account balance is
A) -$20 billion. B) $20 billion. C) always 0. D) impossible to determine with the information given.