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Author Question: Which of the following describes a moral hazard problem? A) a process by which individuals have ... (Read 83 times)

meagbuch

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on: Jun 30, 2018
Which of the following describes a moral hazard problem?
 
  A) a process by which individuals have substantial resources devoted to the exchange process and need to make a profit or they will be adversely affected
  B) a process by which individual buyers or sellers with better information are more likely to participate in voluntary exchange
  C) a contractual problem that results because monopolies exist in all economies
  D) a post-contractual problem that may result because participants to the exchange process have information that allows them to act in an opportunistic manner

Question 2

The price system works in an economy on a day-to-day basis to match the desires of consumers with the output from producers.
 
  Indicate whether the statement is true or false
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
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hramirez205

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

TRUE


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