Because Information Is Scarce

question 71

Multiple Choice

Because information is scarce

• A)helps explain why equity contracts are used so much more frequently to raise capital than are debt contracts.
• B)monitoring managers gives rise to costly state verification.
• C)government regulations,such as standard accounting principles,have no impact on problems such as moral hazard.
• D)developing nations do not rely heavily on banks for business financing.

---

Definitions:

Gender Specific Clothing

Apparel designed and marketed to be worn by individuals of a specific gender, often based on societal norms and expectations regarding gender roles.

Gender Socialization

The process by which individuals learn the cultural norms and expectations associated with their gender through various agents, such as family, education, and media.

Behavioral Theorists

Researchers and psychologists who study and explain human behavior through various theories, often focusing on the effects of environment and learning.

Social-Cognitive Learning

A theory that emphasizes the importance of observational learning, imitation, and modeling in acquiring new behaviors.