Moral hazard is a problem
A) peculiar to direct finance.
B) peculiar to mutual funds.
C) arising before a transaction is consummated.
D) arising after a transaction is consummated.
D
You might also like to view...
GDP measures underestimate the value of output produced by an economy because they include services not transferred through markets
Indicate whether the statement is true or false
Joe receives a 20 percent increase in his income from his part time job and as a consequence decreases his consumption of Ramen noodles by 10 percent. Hence to Joe, Ramen noodles are
A) a normal good with a price elasticity of demand of 0.5. B) a substitute good with a cross elasticity of 0.5. C) a good with a price elasticity of supply of -0.5. D) an inferior good with an income elasticity of -0.5. E) an inferior good with an income elasticity of -2.0.