Government decisions tend to be biased against actions that have

a. current costs and future benefits that are both easily observable.
b. future costs that are difficult to identify and current benefits that are easily observable.
c. future costs and future benefits that are both difficult to identify.
d. current costs that are easily observable and future benefits that are difficult to identify.


D

Economics

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If knowledge possessed by one party in a financial transaction is not known to the other party, ________ exists

A) fraud B) asymmetric information C) disintermediation D) no financial intermediation

Economics

The Fed's power to set the required reserves of commercial banks:

a. provides a certain source of interest income for commercial banks. b. allows the Fed to control the lending ability of commercial banks and, thereby, control the money supply. c. prevents banks from hoarding too much vault cash. d. prevents commercial banks from earning excess profits.

Economics

Those who do not favor programs aimed at reducing inequality argue that these programs:

A. reduce people's incentive to work hard. B. increase the crime rates. C. prevent the economy from reaching equilibrium in the labor market. D. penalize people who are unable to work through no fault of their own.

Economics

When purchasing a future contract, the buyer of a futures contract:

A. must pay a set amount to the seller regardless of what the future price turns out to be. B. assumes very little risk of the future price fluctuation of some asset. C. agrees to pay the seller later where the payment is based on the future price of some asset. D. none of these are true.

Economics