Linda noticed that ever since her brother bought theft insurance for his car, he keeps forgetting to lock his car. Her brother's behavior is an example of ________
A) adverse selection
B) moral hazard
C) a positive externality
D) a pecuniary externality
B
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Pietro is a manager at a carwash. He has hired 10 workers to wash and detail cars for him and is considering what type of payment scheme he should set up for his workers
He can pay each of his workers $9 per hour to wash and detail cars, or he can pay his workers $12 for each car a worker washes and details. (It takes 75 minutes, on average, for an employee to wash and detail a car.) If Pietro wants to maximize the number of cars his workers wash and detail in one day, which payment scheme should he use? Explain.
The study of microeconomics and macroeconomics differ in that:
A. microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy. B. microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy. C. microeconomics studies the actions of households and macroeconomics studies the actions of business firms. D. microeconomics examines the whole economy while macroeconomics studies the individual units of the economy.
Carlos pays his cable bill using his bank's internet banking web site to withdraw funds from his checking account. This transaction is a(n):
A. e-money transaction. B. automated clearinghouse transaction (ACH). C. Fedwire transaction. D. digitized-check transaction.
The enjoyement or satisfaction People recieve from consuming a good or sevice
What will be an ideal response?