Hold-up:
A. mitigates worker shirking.
B. makes spot exchange efficient.
C. solves the principal-agent problem.
D. is a hazard associated with relationship-specific exchange.
Answer: D
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The efficient markets hypothesis indicates that investors
A) can use the advice of technical analysts to outperform the market. B) do better on average if they adopt a "buy and hold" strategy. C) let too many unexploited profit opportunities go by if they adopt a "buy and hold" strategy. D) do better if they purchase loaded mutual funds.
What are the two meanings of interest in economics?
What will be an ideal response?
During the Great Depression, one reason the Federal Reserve did not respond forcefully was the "free gold problem," which refers to the idea that ___
a. gold was fleeing Nazi Germany, thus undermining the Fed's attempt to control the money supply b. gold was essentially free because people had excess supplies of currency that could be converted into gold c. the Fed claimed that almost all its gold was tied up by reserve requirements (there was little free so it could not increase the money supply) d. gold was essentially free because silver, which existed in abundance, could be converted into gold at the fixed rate of 16:1
If the United States has an absolute advantage in producing computer components, it should export them worldwide
a. True b. False