Author Question: The problems posed by special interests are unaffected by fiscal federalism. a. True b. ... (Read 54 times)

Zoey63294

  • Hero Member
  • *****
  • Posts: 539
The problems posed by special interests are unaffected by fiscal federalism.
 
  a. True b. False

Question 2

Adverse selection occurs when an agreement encourages undesirable behavior.
 
  Indicate whether the statement is true or false



kbennett34

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

b

Answer to Question 2

False. This is a moral hazard. Adverse selection occurs if the offer to make an agreement attracts a certain type person who undertakes the undesirable behavior anyway.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

For a complete list of videos, visit our video library