The government of Eduland provided generous unemployment benefits to all the unemployed workers. However, the new government that came into power reduced the amount of unemployment insurance paid to each worker
This increased the average number of hours spent daily by unemployed workers in looking for jobs. This suggests that ________ exists in the labor market in Eduland. A) the problem of moral hazard
B) a tragedy of the commons
C) a pecuniary externality
D) a positive externality
A
You might also like to view...
If there is a rise in the price level, there is ________ in the quantity of real GDP supplied and a movement ________ along the AS curve
A) a decrease; downward B) an increase; downward C) a decrease; upward D) an increase; upward E) no change; upward
The government's provision of nonexcludable public goods such as national defense is accepted because
A. government is more efficient than private firms at producing goods. B. the market fails to produce nonexcludable public goods as a result of the free-rider problem. C. people do not value public goods such as national defense very highly. D. a and c E. all of the above
If a production possibility curve representing a trade-off between a grade in English and a grade in math has a negative slope, we know that:
A. there is an inverse relationship between grades in English and grades in math. B. there is a direct relationship between grades in English and grades in math. C. one can get better grades in English only if one gets better grades in math. D. there is no relationship between grades in English and grades in math.
Standard loans of the International Monetary Fund, known as stand-by arrangements, are normally to be repaid in ten years.
Answer the following statement true (T) or false (F)