Chapter 16 on "Financial System Design" calls the asymmetric information problem discussed in earlier chapters the __________ conflict

The tuna-dolphin dispute was ruled by the WTO in favor of nations that _______________. The ruling said that trading partners _______________ bar imports based on _______________.

a. exported tuna to the United States and Europe; could not; a production process such as the size of the nets used b. imported tuna; could; the production process c. cared about wildlife in the seas; could; concerns over the safety of dolphins d. produced seafood products; could not; the way the products were used, such as in pet food

Suppose your bank pays you 5 percent interest per year on your savings account. If prices increase by 5 percent per year over that time, approximately how much real value do you gain by keeping $100 in the bank for a year?

A) $0 B) $1 C) $3 D) $6