The price of a given basket of goods in Richland is 75 ritz. If ...

[c0205847]

The price of a given basket of goods in Richland is 75 ritz. If the same basket of goods cost 10 in the U.S., the price of a basket of goods worth 1 in the U.S. is ________.
 
  A) 0.13 ritz B) 1 ritz C) 7.5 ritz D) 1.5 ritz

Question 2

Adverse selection refers to the
 
  A) use of statistical discrimination in making loans.
  B) possession of information by one party in a financial transaction not known by the other party.
  C) likelihood that a potential borrower may use the funds that he receives for unworthy, high risk projects.
  D) possibility that the borrower may engage in riskier behavior after the loan is obtained.

[Jayson]

Answer to Question 1

C

Answer to Question 2

C