Two problems that arise from asymmetric information are:
A. adverse selection and diseconomies of scale.
B. moral hazard and the free-rider problem.
C. the free-rider problem and adverse selection.
D. moral hazard and adverse selection.
Answer: D
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The national security argument is used by those who assert they want to
A) increase imports as a way of strengthening their country. B) limit exports to control the flow of technology to third world nations. C) limit imports that compete with domestic producers important for national defense. D) limit all imports. E) increase exports as a way of earning money to strengthen their country.
Which part of the Federal Reserve System meets every 6 weeks to determine the nation's monetary policy?
A) Federal Open Market Committee B) Board of Governors C) the Federal Reserve Banks D) depository institutions such as commercial banks