Two common economic problems that may arise from asymmetric information are:
A. moral consequence and adverse selection.
B. moral hazard and adverse selection.
C. moral hazard and adverse decisions.
D. moral consequence and adverse decisions.
B. moral hazard and adverse selection.
You might also like to view...
An open market sale, an increase in the discount rate, and an increase in the reserve requirement would shift the aggregate demand curve leftward
Indicate whether the statement is true or false
What is a reason not to protest poor working conditions in factories in low-income countries?
a. It would increase the price of goods imported into the United States. b. The working conditions are not that bad. c. The alternative job opportunities are worse. d. The protests have no effect on working conditions.
The optimal degree of abstraction depends on the objective of the analysis
a. True b. False Indicate whether the statement is true or false
The Friedman natural rate theory is based on rational expectations and is also called the new classical theory
Indicate whether the statement is true or false