Because of the problem of scarcity, each economic system must make which of the following choices?

Economies of scale enable financial institutions to

A) reduce transactions costs. B) avoid the asymmetric information problem. C) avoid adverse selection problems. D) reduce moral hazard.

The Fixed Effects regression model

A) has n different intercepts. B) the slope coefficients are allowed to differ across entities, but the intercept is "fixed" (remains unchanged). C) has "fixed" (repaired) the effect of heteroskedasticity. D) in a log-log model may include logs of the binary variables, which control for the fixed effects.