Moral hazard is the term used to describe the situation in which:
a. a consumer may buy a low-quality product.
b. consumers receive a lower price because of a mistake on the part of the clerk.
c. a consumer is being compensated for a defective product.
d. people may change their behavior after they have signed a contract or agreed to a specified behavior.
e. people want to change their behavior after they have signed a contract or agreed to a specified behavior but are unable to do so.
d
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Answer the following statements true (T) or false (F)
1. In a cooperative type of enterprise, a shareholder has only one vote regardless of the number of shares held. 2. In the United States, marketing cooperatives are most commonly found in the agriculture industry. 3. There are no government-regulated markets in the U.S. economy. 4. The U.S. economy is a mixture of perfect and imperfect competition and regulated and nonregulated industries.
Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners, including trading partners that heavily protect their home markets
Indicate whether the statement is true or false
A change in foreign demand does not affect aggregate demand
a. True b. False Indicate whether the statement is true or false
A monopolist will always enlarge its revenues by selling more output
a. True. b. False.