Moral hazard is the idea that when people are insured against the consequences of a risk, they will engage in risker behavior.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Which of the following statements is true of British colonies in Jamaica and Barbados?
A) Production was based on well-defined property rights and private ownership of resources. B) The institutions set up in colonies in Jamaica and Barbados were mostly inclusive. C) Participation of the natives in politics was greatly limited. D) The colonies were similar to the ones set up in North America.
Refer to Figure 22-1. Technological change is illustrated in the per-worker production function in the figure above by a movement from
A) A to B. B) B to A. C) D to C. D) B to C.
In the fooling model, real wages
A) are countercyclical. B) are procyclical. C) are constant. D) show no clear cyclical pattern.
Which of the following statements about a perfectly competitive market are TRUE?
I. The perfectly competitive industry faces an upward sloping labor supply curve. II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve. A) I only B) II only C) both I and II D) neither I nor II