To the extent that there are concerns about moral hazard and adverse selection in a country,
A) economic growth will be hindered.
B) there will be more portfolio investment.
C) there will be more foreign direct investment.
D) it will be easier to arrange financing for new development projects.
A
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A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:
A. an increase in the supply of fruitcake. B. a decrease in the supply of fruitcake. C. no change in the supply of fruitcake, but the demand would increase. D. no change in the supply of fruitcake, but the demand would decrease.
An effective program used to fight transient poverty is:
A. unemployment insurance. B. health insurance. C. job training. D. All of these are effective at fighting transient poverty.
The traditional tools of monetary policy
A. can only be utilized after obtaining the approval of Congress. B. rely heavily upon changes in individual income tax rates. C. seek to influence an "intermediate" target variable. D. directly impact the economy.
Recall the Application about the economics professor who caught three students cheating on their final exam to answer the following question(s).Recall the Application. After being caught cheating, the economics professor called each student into his office individually. Each student was given two options: 1. If the student confessed, he or she would receive a zero on the final exam but suffer no other consequences. 2. If the student did not confess, he or she would go before the Office of Student Judicial Affairs, and any confessions by the other two students would be used as evidence. Based on the prisoners' dilemma, how many of the three students would be expected not to confess?
A. 0 B. 1 C. 2 D. 3