Adverse selection and moral hazard problems arise when there is
A) complete information
B) asymmetric information.
C) too much information.
D) symmetric information.
B
Economics
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Which of the following correctly expresses the relationship between the marginal utilities of two goods and marginal rate of substitution between the goods?
A. MRSXY = (MUY/MUX) B. MRSXY = (MUX/MUY) C. MRSXY = (U/?X) D. MRSXY = (U/?Y)
Economics
An example of a good that is rival in consumption is:
A. tap water. B. a sweater. C. bottled water. D. All of these goods are rival in consumption.
Economics