When the buyer knows less than the seller about the characteristics of the good being sold, there is
a. a principal-agent problem.
b. a moral hazard problem.
c. an adverse selection problem.
d. a signaling problem.
c
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Direct marketing is
A) advertising that permits a consumer to follow up directly by searching for more information and placing direct product orders. B) advertising that targets a specific audience and allows the consumer to follow up directly by placing direct product orders usually through television or radio. C) advertising targeted at specific consumers. D) advertising intended to reach as many consumers as possible.
If Y = $100 billion, then C = $50 billion, and I = $60 billion. What will autonomous investment be when Y = $200 billion and C = $100 billion?
a. $50 billion b. $60 billion c. $100 billion d. $120 billion e. $200 billion