Adverse selection and moral hazard are examples of:

A) transaction costs
B) information cost
C) symmetric information
D) financial market efficiency


B

Economics

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If the price of a pizza were to increase to $50, many people would give up eating pizza while others would continue to eat it. This would indicate

A) those who are buying pizza value it at least $50 per pizza. B) those who are not buying pizza value it more than $50 per pizza. C) only those who are extremely wealthy are buying pizza. D) the price of pizza needs to be regulated by the federal government.

Economics

A reduction in the amount of farmable land inside a nation would cause the:

A. long-run aggregate supply curve to shift to the right. B. long-run aggregate supply curve to shift to the left. C. short-run aggregate supply curve to shift to the right. D. aggregate demand curve to shift to the right.

Economics

Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:

A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.

Economics

A particular woman is denied on-the-job training because women on average are more likely to drop out of the workforce than men. This illustrates:

A. occupational segregation. B. the crowding model. C. the taste-for-discrimination model. D. statistical discrimination.

Economics