Homework Clinic

Social Science Clinic => Economics => Microeconomics => Topic started by: JMatthes on Jun 30, 2018

Title: The publisher that paid Arthur Arthur, the popular novelist, a 2 million advance on his recent ...
Post by: JMatthes on Jun 30, 2018

The publisher that paid Arthur Arthur, the popular novelist, a 2 million advance on his recent novel, which sold only 42 copies, fell victim to
 a. moral hazard
  b. an authority relation
  c. the winner's curse
  d. the principal-agent problem
  e. adverse selection

Question 2

The current account records
 a. last year's flows of funds into and out of the country
  b. current flows of imports and exports of goods and services, net income earned by U.S. residents from foreign assets, and net transfer payments
  c. current flows of imports and exports of goods only
  d. only net income earned by U.S. residents from foreign assets
  e. only current flows of imports and exports of goods and services and net transfer payments

Title: The publisher that paid Arthur Arthur, the popular novelist, a 2 million advance on his recent ...
Post by: al on Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

B