Traditionally, the federal government provides disaster relief funds to flood victims so that they can rebuild their homes after a major flood
However, the government has recently denied requests to rebuild some homes that were situated in flood-prone areas. This action represents an attempt to ________ the moral hazard problem associated with building private homes in risky areas. A) enhance
B) mitigate
C) legalize
D) support
B
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If the single-input producer choice set is fully convex, the first order conditions of the profit maximization problem are necessary but not sufficient for identifying the profit maximizing production plan.
Answer the following statement true (T) or false (F)
The formula for average fixed costs is
A) TFC - q. B) TFC/q. C) q/TFC. D) ?q/?TFC.
The concept of limited liability
A) does not apply to a corporation. B) means that the owners of a corporation have liability limited to the value of the shares in the firm. C) means that owners of a firm are subject to double taxation. D) limits the amount of specialization that can occur in a firm.
To close a recessionary gap, the Fed would
A. decrease the money supply. B. sell bonds. C. increase the money supply. D. increase interest rates.