Which of the following did not contribute to the failing of Freddie Mac and Freddie Mae?
A) Problems with adverse selection.
B) Problems with moral hazard.
C) Weak regulatory oversight.
D) Unethical accounting practices.
A
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During the last 50 years, which of the following had the lowest level of real GDP per person?
A) Africa B) Central and South America C) United States D) Central Europe
The tendency for people to enter into agreements in which they can use their private information to their own advantage and to the disadvantage of the less informed party is known as
A) adverse selection B) moral hazard. C) the market for oranges. D) a signal.
The new classical explanation of aggregate supply in the short run builds on research by
A) Irving Fisher. B) John Maynard Keynes. C) Robert Lucas. D) Robert Solow.
What are the major sources of economic profit?
a. certainty, monopolistic competition, and inelastic supply. b. competition, perfect information, and elasticity of market demand. c. barriers to entry, uncertainty, and entrepreneurial alertness. d. externalities, inflation, and size of firm.