Adverse selection and moral hazard are problems that arise in the presence of asymmetric information.
Answer the following statement true (T) or false (F)
True
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According to the foreign trade effect, when the U.S. price level decreases, U.S. consumers are likely to buy:
A. More American-made products. B. Different American-made products. C. More foreign-made products. D. Less of all products, both American made and foreign made.
On the long-run aggregate supply curve
A) a decrease in the price level decreases the level of potential GDP. B) a decrease in the price level increases the aggregate quantity of GDP supplied. C) a decrease in the price level decreases the aggregate quantity of GDP supplied. D) a decrease in the price level has no effect on the aggregate quantity of GDP supplied.
If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $3,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is
A. $5,600. B. $5,900. C. $10,100. D. $11,600.
Suppose the Social Security Administration would like to guarantee the purchasing power of social security payments to the elderly does not diminish
That is, the real value of the payments does not decrease. The CPI in 1990 was 130.7 and the CPI in 1998 was 163.0. How much does the Social Security Administration need to increase payments from 1990 to 1998 to accomplish this objective?