An example of a moral hazard would be Andrew leaving the washer, dryer, and dishwasher running at home while he goes to class since he is fully insured and he will not be at risk if a fire occurs
a. True
b. False
A
You might also like to view...
In the market for both renewable and nonrenewable resources, the timing of the use of resources depends on:
a. the alternatives uses to which the resource is put. b. the market rate of interest. c. the availability of substitutes. d. the elasticity of demand for resources. e. government regulations.
Suppose that a consumer purchases just two goods, X and Y. The ratio of the price of good X to the price of good Y is the:
A. Intercept on the Y axis of the budget line B. Intercept on the X axis of the budget line C. Size of the shift in the budget line D. Slope of the budget line
Number of workersUnits of output00110230344455
Refer to Table 5.1, which gives a firm's production function. Assume that all non-labor inputs are fixed. Marginal product is maximized when the firm hires:
A. 2 workers. B. 3 workers. C. 4 workers. D. 5 workers.
When President Obama took office in January 2009, he pledged to pursue an expansionary fiscal policy to try to pull the economy out of the recession. The next month, Congress passed the American Recovery and Reinvestment Act of 2009, an $840 billion
package of spending increases and tax cuts that was A) the largest fiscal policy action in U.S. history. B) second in size only to the fiscal policy action taken during the Great Depression. C) small in comparison to the actions taken during the recession of 1974-1975. D) roughly equal to the spending increases and tax cuts implemented during the recession of 1980-1982.