All of the Following Are Consequences of Adverse Selection on Good

question 78

Multiple Choice

All of the following are consequences of adverse selection on good firms EXCEPT

• A)the cost of external financing increases.
• B)firms need to rely more on internal funds.
• C)firms need to rely more on accumulated profits.
• D)firms will only be able to attain financing from the government.

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Definitions:

Formal Operations

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly, reason logically, and manage problems systematically.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding over the lifespan.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development.

Cognitive Development

The study of how thinking, problem solving, and intelligence evolve as people grow from infancy through adulthood.