Moral hazard occurs when buyers and sellers take actions to communicate quality in a world of uncertainty.
Answer the following statement true (T) or false (F)
False
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The explanation for the slope of
a. the supply of loanable funds curve is based on the logic that a higher real interest rate leads to higher saving. b. the demand for loanable funds curve is based on the logic that a higher interest rate leads to higher saving. c. the supply of loanable funds curve is based on the logic that a higher real interest rate leads to lower saving. d. the demand for loanable funds curve is based on the logic that a higher interest rate leads to lower saving.
Conspicuous consumption refers to the consumption of goods and services:
A. not to show off to others but for one's direct pleasure. B. that generally provide more satisfaction to the consumer than any other kind of consumption. C. that do not provide any kind of satisfaction to the consumer. D. not for one's direct pleasure but simply to show off to others.
Largest crowding out effect occurs when planned investment schedule looks:
A) down sloping and curved B) vertical C) horizontal D) upward sloping and curved
Which of the following is a fixed cost?
a. electricity b. worker bonuses c. mortgage on the building d. steel to produce refrigerators