Which of the following is an application of the adverse-selection problem?
a. a customer driving more recklessly after buying car insurance.
b. a teenager "hanging out" with friends his or her parents do not approve of.
c. shareholders offering a high-powered incentive contract to a manager.
d. an auto repairman claiming that the repairs are more extensive than they actually are.
d
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A production possibilities curve determines the price at which goods trade
Indicate whether the statement is true or false
When both worker productivity and the price of the output being produced increase in an LDC, we can expect labor
a. demand to increase b. demand to decrease c. supply to increase d. supply to decrease e. supply and demand to shift out to the right
Which of the following is an example of U.S. foreign direct investment?
a. A Greek company opens a cheese factory in the U.S. b. A German mutual fund buys stock issued by a U.S. corporation. c. A U.S. beverage company opens a bottling plant in Russia. d. A U.S. bank buys bonds issued by an Argentinean company.
In some ways, adaptation is similar to
A. a cap-and-trade system. B. a supply curve shift. C. mitigation. D. the usual demand response to a price change.