When the buyer knows less than the seller about the characteristics of the good being sold, there is
a. a principal-agent problem.
b. a moral hazard problem.
c. an adverse selection problem.
d. a signaling problem.
c
You might also like to view...
A cartel is: a. a group of oligopolists who try to behave like a single monopolist and split the benefits among themselves. b. a government-approved organization for the exchange of technical information among firms
c. an industry trade group formed to lobby political leaders d. a regulated industry manufacturers association that is officially permitted to set the price of its product above long-run average total cost.
If the nominal interest rate is high and rising, a possible cause is
A) increased lending activity.
B) a rising inflation rate.
C) a falling real interest rates.
D) increased government borrowing.
Remittances refers to:
A. the portion of money paid to immigrants that is not domestically taxed. B. money paid to immigrants from hosting countries. C. the money immigrants get from the government once they immigrate to a nation. D. money sent home from immigrants working abroad.
“If demand increases and supply decreases, then both the equilibrium price and quantity will increase.” What conditions are necessary to make this statement true?
Please provide the best answer for the statement.