A country can develop without a large natural resource base

When the price of a good falls, consumers buy a larger quantity because of the ________ effect and the ________ effect

A) normal; inferior B) substitution; income C) substitute; complement D) supply; demand

Regular bank examinations and restrictions on asset holdings help to indirectly reduce the ________ problem because, given fewer opportunities to take on risk, risk-prone entrepreneurs will be discouraged from entering the banking industry

A) moral hazard B) adverse selection C) ex post shirking D) post-contractual opportunism