Fin 571 final exam with solution 100% correct : 1) occurs when a
1) Occurs when a “follower” receives the benefit of an expenditure made by a “leader” by imitating the leader’s behavior. A. free-rider problem B. The Principle of Comparative Advantage C. asymmetric information D. put option 2) Occurs when inaccurate information can falsely exist. A. moral hazard B. The Principle of Valuable Ideas C. free-rider problem D. adverse selection 3) Refers to situations wherein the agent […]