This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is adverse selection? A) It refers to the situation in which one party to a transaction ... (Read 130 times)

@Brianna17

  • Hero Member
  • *****
  • Posts: 550
on: Jun 29, 2018
What is adverse selection?
 
  A) It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.
  B) It refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.
  C) It refers to the private, self-interested actions people that people pursue, which when taken collectively leads to a loss in economic surplus.
  D) It refers to the actions people take before they enter into a transaction so as to mislead the other party to the transaction.

Question 2

How is the equilibrium exchange rate determined?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

trog

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The equilibrium exchange rate is the exchange rate that sets the quantity of U.S. dollars demanded equal to the quantity of U.S. dollars supplied. At the equilibrium exchange rate there is neither a shortage nor a surplus of U.S. dollars.


@Brianna17

  • Member
  • Posts: 550
Reply 2 on: Jun 29, 2018
Excellent

JCABRERA33

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Bartel and Szostak demonstrated chemical selection for RNA molecules that can catalyze phosphoester Bartel and Szostak demonstrated chemical selection for RNA molecules that can catalyze phosphoester
Evolutionary adaptation to a new environment via natural selection. Evolutionary adaptation to a new environment via natural selection.
Use of cell fusion and selection to obtain hybridomas producing monoclonal antib Use of cell fusion and selection to obtain hybridomas producing monoclonal antib
Dental Related Adverse Effects in Patients Undergoing Cancer Treatment Dental Related Adverse Effects in Patients Undergoing Cancer Treatment
The two skills of the element Selection of Alternatives The two skills of the element Selection of Alternatives
Stabilizing selection eliminates extreme forms of a trait Stabilizing selection eliminates extreme forms of a trait
Video: Acid-base imbalances - compensation of respiratory acidosis and alkalosis

For a complete list of videos, visit our video library