What is "moral hazard"?
What will be an ideal response?
The risk involved to one party when another party's behavior changes in a detrimental manner after a contract has been entered into. Usually, this is the result of asymmetric information.
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Discuss the distribution of income around the world. Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?
What will be an ideal response?
The efficient quantity of a public good is the quantity that has the highest possible marginal social benefit
Indicate whether the statement is true or false
Explain how it is possible for a downward-sloping demand curve to have a constant slope but still have a variation of elasticity of demand along it
What will be an ideal response?
A government balanced budget is
A) an excess of government spending over government revenues during a given time period. B) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. C) the total value of all outstanding federal government securities. D) all federal government debt irrespective of who owns it.