Imperfect information means which of the following?
a. one party to the transaction has more information than the other party
b. buyers and sellers have all the information necessary to make an informed decision
c. buyers and sellers do not have all the information necessary to make an informed decision
d. buyers always have more information than sellers to make an informed decision
c. buyers and sellers do not have all the information necessary to make an informed decision
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Richard Causey, former chief accounting officer for Enron, pleaded guilty to falsely reported costs for Enron that were ________ than they actually were, resulting in reported accounting profits for Enron that were ________ than their actual level
The financial statements were falsified to mislead investors about the profitability of the firm. A) lower; higher B) lower; lower C) higher; lower D) higher; higher
Markets tend to overallocate resources to the production of a good when
A) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.