Adverse selection is
a. the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior.
b. an action taken by an uninformed party to induce an informed party to reveal information.
c. the failure of majority voting to produce transitive preferences for society.
d. the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party.
d
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If the tax rate remains the same as the base increases, the income tax structure is said to be: a. proportional
b. lump-sum. c. negatively skewed. d. progressive. e. regressive.
Suppose you form a legal partnership with your best friend, and she purchases consulting services calling for a $100,000 fee. Your business is broke, and you never wanted the consultants to work for you, just your partner did. For how much of this debt are you legally liable?
a. none of it b. $100,000 c. the proportion reflected by the proportion of the business owned d. only an amount equal to the assets of the business e. $50,000
How is a cheeseburger classified?
a) excludable and rival in consumption b) excludable and nonrival in consumption c) nonexcludable and rival in consumption d) nonexcludable and nonrival in consumption
If consumers spend 90 cents out of every extra dollar received, the
A. Multiplier is 0.90. B. Multiplier is 9. C. MPS is 0.90. D. MPC is 0.90.