We can say that a contract is able to prevent moral hazard when
A) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-averse people.
B) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-loving people.
C) it shifts risk to risk-loving people.
D) it eliminates production inefficiencies due to moral hazard and shifts risk to risk-averse people.
A
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Which of the following would be included in GDP?
a. Production of computers by IBM in Japan b. The value of a car. c. The commission on the sale of your house. d. The value of childcare provided at home by the child's mother.
Suppose a tax on buyers has been imposed in the graph shown. Once the tax is in place, the sellers experience:
A. a decrease in supply.
B. an increase in supply.
C. a decrease in quantity supplied.
D. an increase in quantity supplied.
In a perfectly competitive market, which of the following is the main factor that affects consumers' decisions on which firm to purchase a good from?
A. price B. quality C. reputation D. customer service
You have observed that every time you get a new tattoo the day before you take an exam you get an A. You therefore conclude that to get an A on an exam, all you have to do is get a new tattoo the day before. You have committed the
A. fallacy of inductive reasoning. B. fallacy of division. C. Ockham's fallacy. D. post hoc, ergo propter hoc fallacy.