An example of moral hazard is
a. A taxi driver paid per mile taking the shortest route
b. a piece-rate garment worker shirking more than a per jour worker
c. an hourly salesman working harder than a commission salesman
d. an author on contract going to fewer book signings as one with a percentage royalty rate
d
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Refer to Figure 15.2. The economy is at full employment and the unemployment rate is at the natural rate at point
A) a. B) b. C) c D) d.
Which of the following statements is an example of normative economic analysis?
A) Pollution regulations have raised the cost of production for energy companies. B) As the wage rate increases, companies are hiring fewer workers. C) Improvements in technology have reduced the time needed to manufacture automobiles. D) Tablet computers should be manufactured in countries that do not restrict internet access to their citizens.
Non-activists believe that the IS curve is
A) very flat and that real output is sometimes very sensitive to monetary policy in the short run. B) very steep and that real output is sometimes very sensitive to monetary policy in the short run. C) very flat and that real output is not sensitive to monetary policy in the short run. D) very steep.
Why do many people choose NOT to read the manuals included with their new computer?
A) They perceive that learning by doing decreases costs faster than learning by reading. B) They perceive that learning by doing is more enjoyable than learning by reading. C) They perceive that learning by reading is not sophisticated. D) They believe that the manuals are not accurate.