The basic idea behind moral hazard is that ________
A) some economic transactions impose an additional cost on society
B) some economic transactions give rise to an additional benefit to society
C) people tend to take more risks if they do not have to bear the costs of their behavior
D) people do not reveal their true preference for goods that are non-excludable in consumption
C
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From 1980 to 2000 the labor force participation rate generally ________ and from 2000 to 2014 the rate generally ________
A) increased; decreased B) decreased; decreased C) increased; increased D) decreased; increased
Economists cite some beneficial effects of price discrimination. What are these benefits and how do the antitrust laws treat price discrimination?
In arriving at the quantity of output and price of its product, a company
a. chooses either output or price, and consumer demand determines the other. b. has no control over either quantity or price. c. makes two decisions by setting both optimal output and optimal price. d. generally leaves both quantity and price decisions to consumers.
Human capital is a combination of inborn and acquired skills, talent, and knowledge.
Answer the following statement true (T) or false (F)