The number of CDs purchased increased by 50 percent when consumer income increased by 10 percent. Assuming other factors are held constant, CDs would be classified as:

Individuals with homeowner's insurance tend to be more forgetful about locking their possessions safely before heading out. This is an example of

a. Adverse selection b. Moral hazard c. Screening d. None of the above

Transfer prices can be set in such a way so as to maximize profits for an entire business

Indicate whether the statement is true or false