Private information-collection firms fail to eliminate the adverse selection problem because
A) the law does not allow them to disclose private information about the creditworthiness of firms.
B) they do not monitor borrowers after loans have been made.
C) some investors who do not pay for their services will still profit from them.
D) most companies refuse to provide them with any information.
C
Economics
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The sole owner of a unincorporated business unable to pay its debts:
a. may be sued by the people to whom the business owes money b. may be forced to pay them out of his own bank account c. may be forced to sell his personal property to pay those debts d. all of these are correct
Economics
Adverse selection and moral hazard are two different terms that mean essentially the same thing.
Answer the following statement true (T) or false (F)
Economics