The risk that a borrower has a greater understanding about their potential future behavior than a potential lender is known as ________
A) the problem of adverse selection
B) the problem of moral hazard
C) ornamental torsion
D) the asymmetric innovation problem
B
Economics
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On average, collective bargaining increases wages
a. true b. false
Economics
Assume a purely competitive, increasing-cost industry is in long-run equilibrium. If a decline in demand occurs, firms will:
A. leave the industry, price will decrease, and quantity produced will increase. B. enter the industry and price and quantity will both increase. C. leave the industry and price and output will both increase. D. leave the industry and price and output will both decline.
Economics