With a 10 percent interest rate on dollar deposits, and an expected appreciation of 7 percent over the coming year, the expected return on dollar deposits in terms of the dollar is

If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 20 units of output,

A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is not possible to determine which option is more economically efficient.

A firm deciding to hire a secretary, bases its decision on how well the candidate is trained on certain software. This practice addresses:

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