Governments are often forced to bail out large banks to prevent the entire economy from being affected adversely. This provision often encourages banks to invest in risky assets. This is an example of ________
A) moral hazard
B) a positive externality
C) adverse selection
D) anchoring
A
Economics
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The least liquid asset on this list is
A) money. B) bonds. C) houses. D) stocks.
Economics
Economies of scale can be caused by all of the following except:
a. price discounts for large scale purchases. b. labor specialization. c. use of more productive equipment. d. increases in the firm's average total cost. e. more cost-efficient methods of marketing.
Economics