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
You might also like to view...
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.
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.
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
If a country has perfect income equality, the Gini coefficient is
A. 1. B. -1. C. 0. D. infinity.1