The temptation of imperfectly-monitored workers to shirk their responsibilities is
a. an example of the moral hazard problem.
b. an example of the adverse selection problem.
c. an example of screening.
d. an example of signaling.
a
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When lenders are unable to get good information about the worthiness of a project the lender has the problem of
A) adverse selection. B) moral selection. C) moral hazard. D) adverse hazard.
For each one dollar increase in real GDP, aggregate planned expenditure
A) increases by less than a dollar. B) increases only if autonomous expenditure increases. C) increases by one dollar. D) increases by more than a dollar. E) is unaffected.
Commercial paper has a maximum maturity of
A) one day. B) seven days. C) 30 days. D) 270 days.
The graph of the production function plots total cost versus quantity of output
a. True b. False Indicate whether the statement is true or false