The tendency for people to enter into agreements in which they can use their private information to their own advantage and to the disadvantage of the less informed party is known as
A) adverse selection
B) moral hazard.
C) the market for oranges.
D) a signal.
A
You might also like to view...
In the long-run, if the economy is operating at the full employment level, the equilibrium level of real GDP is determined solely by the:
a. level of unemployment in the economy. b. rate of inflation in the economy. c. real interest rate in the economy. d. aggregate supply curve of the economy. e. aggregate demand curve of the economy.
Microeconomics and macroeconomics use different units of analysis
Indicate whether the statement is true or false
In the long run, a perfectly competitive industry tends to develop differentiated products
a. True b. False Indicate whether the statement is true or false
An economic boom that creates an inflationary gap is usually followed later by
a. falling prices. b. a period of stagflation. c. an increase of potential GDP. d. an increase in aggregate supply.