The type of contract selected depends on the information available to the parties
Indicate whether the statement is true or false
True . The efficiency in production and risk bearing from a specific contract will depend on the information available to the principal and agent.
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The collapse of the subprime mortgage market
A) did not affect the corporate bond market. B) increased the perceived riskiness of Treasury securities. C) reduced the Baa-Aaa spread. D) increased the Baa-Aaa spread.
Under the least squares assumptions for the multiple regression problem (zero conditional mean for the error term, all Xi and Yi being i.i.d., all Xi and ui having finite fourth moments,
no perfect multicollinearity), the OLS estimators for the slopes and intercept A) have an exact normal distribution for n > 25. B) are BLUE. C) have a normal distribution in small samples as long as the errors are homoskedastic. D) are unbiased and consistent.
Which of the following occurs when a consumer equilibrium has been achieved? a. The marginal utility of the last unit purchased is identical for all goods
b. The price of the last unit purchased is identical for all goods. c. An equal amount of income is spent on all goods purchased. d. The ratio of the marginal utility of each good divided by its price is equal across all goods consumed.
Rationing schemes are often used during times of war because
a. the market will not come to equilibrium b. military forces cannot afford war supplies c. high prices erode popular support for the war effort d. it is a windfall gain to the typical consumer e. short lines are better than short pocket books