The publisher that paid Arthur Arthur, the popular novelist, a $2 million advance on his recent novel, which sold only 42 copies, fell victim to
a. moral hazard
b. an authority relation
c. the winner's curse
d. the principal-agent problem
e. adverse selection
C
Economics
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When the Fed purchases federal government bonds in the open market
A) the demand for money expands. B) there is no change in the money supply. C) the money supply expands. D) the money supply contracts.
Economics
The unregulated, single-price monopoly shown in the figure above makes a total economic profit of
A) $24. B) $16. C) $8. D) $4.
Economics