Moral hazard can do harm to one party to a contract, but always results in efficient behavior.
Answer the following statement true (T) or false (F)
False
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Which of the following cases was most important in arguing that the "public good" was best served by competition?
(a) Marbury v. Madison (1803) (b) McCulloch v. Maryland (1819) (c) Gibbons v. Ogden (1824) (d) Charles River Bridge v. Warren Bridge (1837)
The economy is in equilibrium, TP = TE, and Real GDP is $2,000 billion. The MPC is 0.75, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending falls by $10 billion. As a result, the TE curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and Real GDP
__________ by __________. A) downward; rise; decrease; falls; $7.5 billion B) downward; fall; increase; rises; $40 billion C) downward; rise; decrease; falls; $40 billion D) upward; rise; decrease; falls; $40 billion E) downward; fall; decrease; falls; $7.5 billion
The primary goal of supply-side economics is to
A. balance the federal budget. B. reduce the balance of payments deficit. C. reduce the money supply. D. reduce inflation and increase growth at the same time.
The production possibility curve:
A. is based on the law of diminishing returns. B. is convex to the origin. C. is the boundary between attainable and unattainable outputs. D. reflects the mixed economy found with most economic systems.