Information asymmetries may make it difficult for important sectors of the economy to receive the funding they need to keep the economy growing. In many economies, this problem is addressed with ________
A) prudential regulation
B) government-directed credit
C) government-backed deposit insurance
D) adverse selection
B
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In the market for factors of production, firms earn income by selling goods and services to households
Indicate whether the statement is true or false
Ceteris paribus, rising employment rates imply
A. Lower labor force participation rates. B. Higher labor force participation rates. C. Falling per capita GDP. D. Rising per capita GDP.
When an investor sells an asset for a profit, then that profit is called a capital gain.
Answer the following statement true (T) or false (F)
The demand for a pack of gum is ________ than is the demand for a steak because ________.
A. less price elastic; a pack of gum is more of a luxury. B. less price elastic; a pack of gum requires a smaller portion of one's income. C. more price elastic; a pack of gum is more of a luxury. D. more price elastic; a pack of gum requires a smaller portion of one's income.