A large farm uses fertilizer that nearby landowners complain may contaminate their water. Tests are conducted and contaminants are found. The costs resulting from this decision are referred to as

From the standpoint of ________, specialization in lending is surprising but makes perfect sense when one considers the ________ problem

A) moral hazard; diversification B) diversification; moral hazard C) adverse selection; diversification D) diversification; adverse selection

The purpose of measuring the overall level of prices in the economy is to permit comparison between dollar figures from different times

a. True b. False Indicate whether the statement is true or false