An example of moral hazard is
a. workers working diligently even though the boss is not looking
b. health care insured employees forgoing their diet and exercise
c. drivers of safer cars turning their phones off before driving
d. borrowers investing their loan proceeds exactly as the bank requires
b
You might also like to view...
In the late 1960s, the Friedman-Phelps "natural rate hypothesis" predicted from the microeconomic structure of the labor market that the long-run Phillips Curve is ________, while macroeconomic events caused a very ________ acceptance of this ch
in aggregate supply theory. A) horizontal, rapid B) horizontal, gradual C) vertical, rapid D) vertical, gradual
Necessities such as food and shelter have inelastic demand
a. True b. False Indicate whether the statement is true or false
Which of the following is true for a price-searcher firm?
a. Its marginal revenue curve will lie below its demand curve. b. Its marginal revenue curve will lie above its demand curve. c. Its marginal revenue curve is equal to its demand curve. d. Its marginal revenue curve is horizontal at the market equilibrium price.
In which of the following U.S. cities is one of the 12 Federal Reserve Banks located?
A. Denver B. Seattle C. New York City D. Miami