The government has bailed out homeowners who are in danger of foreclosure. Furthermore, future homeowners may deduce that the government will again bail them out in the case of future economic turmoil. The government inadvertently has created what is known as:
A. moral hazard.
B. herding.
C. deleveraging.
D. the law of diminishing control.
Answer: A
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The most direct way in which money eliminates the need for a double coincidence of wants is through its use as a
A) medium of exchange. B) standard of deferred payment. C) store of value. D) unit of account.
Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?
A. GDP. B. Real GDP. C. Economic growth. D. Per capita GDP.
When TR is increasing as a monopolist's output increases
A) MR is negative. B) MR is positive. C) MR = 0. D) MR may be positive or negative.
Because models are used to explain economic behavior
A. models can be either simple or complex so long as it explains economic behavior. B. models must be simple. C. models must be complex. D. the assumptions must be complex while the models themselves are simple.