The ________ problem helps to explain why the private production and sale of information cannot eliminate ________
A) free-rider; adverse selection
B) free-rider; moral hazard
C) principal-agent; adverse selection
D) principal-agent; moral hazard
A
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Based on the above table, the unemployment rate is
A) 10 percent. B) 11.1 percent. C) 7.1 percent. D) 5.4 percent. E) 8.6 percent.
For a privately owned business in a competitive market setting,
a. reducing resource use while producing the same output adds to profit and typically reduces waste products and thus cuts pollution as well. b. when property rights are well-defined and strictly enforced, the firm will be able to pollute air and water without having to bear the cost of the damages imposed on others. c. wasteful use of resources results in more pollution but greater profit. d. reducing pollution almost never pays.
Which of the following is the most realistic example concerning economic policy?
a. An economist accurately predicts how unemployment rates will change next year. b. An economist knows if the money supply increases 3 percent, interest rates will decrease 3 percent. c. An economist predicts the exact effect an expansionary policy will have. d. An economist believes interest rates will increase next year but is not absolutely sure.
If demand for a good increases and supply remains constant equilibrium price:
a. Will increase, and equilibrium quantity will decrease b. And quantity will both increase c. And quantity will both decrease d. Will decrease, and equilibrium quantity will increase