Rational ignorance might explain low voter turnout because people apply marginal analysis to voting
a. True
b. False
Indicate whether the statement is true or false
True
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Adverse selection is a problem associated with equity and debt contracts arising from
A) the lender's relative lack of information about the borrower's potential returns and risks of his investment activities. B) the lender's inability to legally require sufficient collateral to cover a 100% loss if the borrower defaults. C) the borrower's lack of incentive to seek a loan for highly risky investments. D) the lender's inability to restrict the borrower from changing his behavior once given a loan.
An estimation method is unbiased if it produces a(n) ________ that equals the ________ on average
A) R2; t-statistic B) estimated coefficient; true coefficient C) error term; standard error D) estimated coefficient; residual