Joseph decides to join the Big State University's football team when he learns that his health insurance will pay for any subsequent injury. This illustrates
A) a moral hazard problem.
B) monopolistic behavior.
C) a symmetric information problem.
D) oligopolistic behavior.
A
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Refer to Reducing Long-Run Labor Usage. The scale effect of the wage change is the movement from point
a. X to point A.
b. X to point B.
c. B to point C.
d. C to point D.
A man who thinks he would save money by driving to work rather than taking the bus, but who nonetheless elects to take the bus because driving in rush-hour traffic frightens him, is
A) behaving inefficiently. B) choosing what is for him the most efficient way to commute. C) rejecting economic efficiency for personal reasons. D) wasting scarce resources.
Pretty Polly produces dresses for little girls. If Pretty Polly's advertising campaign becomes more effective, the demand for Pretty Polly's dresses will ________ and Pretty Polly's marginal benefit curve from advertising shifts to the ________.
A) decrease; left B) decrease; right C) increase; left D) increase; right
During the Great Recession, and during the 12 months after the failure of Lehman Brothers, what was the average monthly job loss?
a. 400,000 b. 450,000 c. 565,000 d. 600,000