After a person buys insurance for his car, he will generally not care for his car as much as he otherwise would. This is an example of:
A. risk aversion.
B. adverse selection.
C. moral hazard.
D. None of the statements is correct.
Answer: C
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When Pepsi is considering a price hike, it needs to consider how Coke may react. This situation is called:
a. mutual interdependence. b. price leadership. c. collusion. d. monopolistic competition.
The U.S. Congress passed legislation in the late 1800 . that established land-grant universities to educate citizens in agriculture, home economics, mechanical arts, and other practical professions. Two important missions for land-grant universities are education and research. Explain how the establishment of land- grant universities has affected the growth of the U.S. economy
Time lags can cause economic policy to affect the economy after the underlying problems have changed.
Answer the following statement true (T) or false (F)
Trace the cause-effect chain that results from a restrictive monetary policy.
What will be an ideal response?