If an individual is less careful about avoiding accidents or illness because she has health insurance, this is an example of:
A. the free-rider problem.
B. the moral hazard problem.
C. the adverse selection problem.
D. the Coase theorem.
Answer: B
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During an economic recession,
A) the demand and supply curves for loanable funds both shift to the right and the equilibrium interest rate usually rises. B) the demand and supply curves for loanable funds both shift to the left and the equilibrium interest rate usually falls. C) the demand curve for loanable funds shifts to the right, the supply curve for loanable funds shifts to the left, and the equilibrium interest rate usually falls. D) the demand curve for loanable funds shifts to the left, the supply curve for loanable funds shifts to the right, and the equilibrium interest rate usually rises.
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. An import quota of 35 units would
A) cause consumer surplus to fall by "g." B) cause social welfare to fall by $35. C) increase domestic producer surplus by "g." D) have no effect.
The U.S. dollar is backed by gold
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of income inequality between nations? a. An electronics firm paying less than the U.S. minimum wage because it moved its manufacturing operations to Mexico. b. The opportunity cost of producing wheat in the U.S. is less than that in the United Kingdom
c. A pair of tennis shoes costing $150 in the U.S. costs $220 in the United Kingdom. d. The cost of producing wine in the U.S. is more than that in Italy.