Author Question: The possibility for recipients of funds in foreign countries to engage in riskier behavior after ... (Read 31 times)

penguins

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The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called
 
  A) inequitable financing.
  B) moral hazard.
  C) adverse selection.
  D) asymmetric information.

Question 2

Which of the following statements about a monopolistically competitive firm is FALSE?
 
  A) It tries to differentiate its product from that of competitors.
  B) It may earn short-run economic profits.
  C) It produces the quantity at which MC=MR.
  D) It sets price like a perfectly competitive firm.



robbielu01

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Answer to Question 1

B

Answer to Question 2

D



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