Moral hazard occurs when the parties on once side of the market, who have information not known to others, self select in a way that adversely affects the parties on the other side of the market
Indicate whether the statement is true or false
False
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Which of the following types of information most likely allows the exploitation of a profit opportunity?
A) financial analysts' published recommendations B) technical analysis C) hot tips from a stockbroker D) insider information
The marginal rate of return on investment is equal to capital's
a. MRC ? MRP/2 b. MRC/MRP c. MRP/MRC d. MRC ? MRP/2 e. MRC ? MRP ? the interest rate
The minimum point on the marginal cost curve corresponds to the:
a. maximum point on the total cost curve. b. minimum point on the total cost curve. c. inflection point on the total variable cost curve. d. midpoint of the total cost curve.
Money demand refers to
a. the total quantity of financial assets that people want to hold. b. how much income people want to earn per year. c. how much wealth people want to hold in liquid form. d. how much currency the Federal Reserve decides to print.