An important type of information asymmetry is:
A. information hazard.
B. ethical constraint.
C. adverse selection.
D. advantage imbalance.
Answer: C
You might also like to view...
The table above shows the number of pounds of bricks that can be produced by the Red Brick Company as the number of workers hired increases. The brick market is perfectly competitive and each pound of bricks sells for $20
The labor market is competitive and the wage rate is $30 an hour. When the Red Brick Company maximizes its profit, it produces ________ bricks an hour. A) 19 B) 21 C) 22 D) 10
The demand for insulin will be _________________ than the demand for a Caribbean cruise in general
a. More elastic b. More inelastic c. Less elastic d. Less inelastic
Fiscal policy
a. is dangerous in the short run because it crowds out investment spending b. can change equilibrium GDP in the short run c. can change equilibrium GDP in the long run d. can change equilibrium GDP in both the long and the short run e. is dangerous in the long run because it triggers a multiplier effect
Assuming that the reserve ratio is 0.05 the money multiplier is:
A. 10. B. 20. C. 40. D. 30.