Asymmetric information before a transaction takes place generates the problem of
A) moral hazard. B) adverse selection.
C) bank runs. D) irrational behavior.
B
Economics
You might also like to view...
The Coase theorem is the proposition that if property rights exist, the number of parties is small, and transactions costs are low
A) external costs result in deadweight losses. B) external benefits result in deadweight losses. C) private transactions are efficient. D) public transactions are efficient.
Economics
The measure of production that values output using base-year prices is called
A) underground GDP. B) nominal GDP. C) real GDP. D) value-added GDP.
Economics