If reckless drivers are more likely than safe drivers to buy automobile insurance, then a moral hazard problem has occurred
Indicate whether the statement is true or false
FALSE
You might also like to view...
The asset approach to short-run exchange rate determination relies on which three variables?
a. prices, interest rates, and inflation b. the reserve ratio, aggregate wealth, and interest rates c. nominal domestic rates, foreign interest rates, and expectations of exchange rate changes d. prices, aggregate wealth, and inflation
The various quantities of all final commodities demanded at various price levels, ceteris paribus, is the
A. aggregate demand curve. B. production possibilities curve. C. LRAS. D. aggregate supply curve.
Refer to the above figure. If the government imposes a price ceiling of $20
A) the quantity of goods that will be traded is 100. B) the quantity of goods that will be traded is 200. C) the quantity of goods that will be traded is 150. D) the quantity of goods that will be traded is 0.
Which of the following is true ofthe Food, Conservation, and Energy Act of 2008?
a. It continued the subsidies tied to farm prices that comprised the major share of transfers to farmers. b. The act provided support for the development of bio-fuelsintended to supplement gasoline for automobiles.c. It continued large subsidies to American farmers, which makes the US very different from most industrialized nations, which offer few agricultural subsidies and whose farmers operatein a competitive market. d. It drastically reduced both direct subsidies and subsidies tied to farm prices.