Information gathering for a moral hazard problem happens
a. Before the agent is hired
b. After the agent is hired
c. After the agent is fired
d. None of the above
b
You might also like to view...
The Herfindahl-Hirschman Index approaches ________ when a market consists of a large number of firms of relatively equal size
A) one B) zero C) 100 D) 500
If the number of consumers in a market increases, the market demand curve will
a. decrease, which is a shift to the left of the demand curve. b. increase, which is a shift to the right of the demand curve. c. not shift, but rather this will just cause a movement along the demand curve. d. do none of the above.
Since 1930, interest payments on past federal government borrowings were the highest in the 1980s and 1990s
a. True b. False Indicate whether the statement is true or false
According to the rational expectations theory, which of the following will affect the levels of output and employment?
a. expansionary monetary policy that is fully anticipated b. contractionary monetary policy that is fully anticipated c. changes in monetary policy that are unanticipated d. changes in fiscal policy that are anticipated