When applying for a loan, a borrower tends to know more about her ability to pay it back than does the bank. This is an example of
a. perfect information
b. moral hazard
c. a low marginal benefit of information for the bank
d. asymmetric information
e. optimal search
D
Economics
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If net capital flows were -28 billion and domestic investment was 17 billion, then the amount of domestic savings was
A) -11 billion. B) 45 billion. C) 11 billion. D) -9 billion.
Economics
In an input market, economic rent is defined as
a. the total remuneration paid to a factor of production. b. the minimum amount required to retain a factor of production in its present use. c. the total cost for a firm of renting land, equipment, and buildings. d. the extent to which payments to a factor of production exceed the minimum amount required to retain it in its present use.
Economics