Asymmetric information problems are worse the __________ the borrowing firm, since there is __________ publicly available information about those firms

A) larger; more
B) larger; less
C) smaller; more
D) smaller; less


D

Economics

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If money income increases, a consumer's budget line

A) becomes flatter. B) becomes steeper. C) shifts rightward and its slope does not change. D) shifts leftward and its slope does not change.

Economics

The profit-maximizing combination of resources in a perfectly competitive situation occurs at the point at which

A) MRP of labor = price of labor (wage rate). B) MRP of land = price of land (rental rate per unit). C) MRP of capital = price of capital (cost per unit of service). D) All of the above are correct.

Economics

Exhibit 2-11 Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve of an economy to shift from the one labeled A to the one labeled B?

A. A major natural disaster B. An increase in consumption goods production this year C. An advance in technology D. An increase in unemployment

Economics

If a country has perfect income equality, the Gini coefficient is

A. 1. B. -1. C. 0. D. infinity.1

Economics