Author Question: When property rights are well defined and inexpensive to enforce, ________. A) collateral is an ... (Read 65 times)

Metfan725 · **on:** Jun 30, 2018

When property rights are well defined and inexpensive to enforce, ________.

A) collateral is an efficient solution to asymmetric information problems
B) little or no collateral is needed to secure a loan
C) banks become less dominant among intermediaries
D) poor borrowers are at no disadvantage relative to wealthy borrowers

Question 2

What characteristic do human and physical capital share?

A) Both are controlled by the government.
B) Current costs are incurred for future benefits.
C) Their growth depends crucially on the growth of total factor productivity.
D) The use of both exhibits rivalry.