Jose decides to join the Middle State University's football team when he learns that his health insurance will pay for any subsequent injury. This illustrates
A. a symmetric information problem.
B. monopolistic behavior.
C. oligopolistic behavior.
D. a moral hazard problem.
Answer: D
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The market demand curve in a perfectly competitive market is ________ and the demand curve for a perfectly competitive firm's output is ________
A) downward sloping; downward sloping B) downward sloping; horizontal C) horizontal; downward sloping D) horizontal; horizontal E) downward sloping; upward sloping
Randomized controlled trials:
A. choose people randomly to measure the impact of a particular intervention, saving the cost of evaluating all participants. B. randomly assign people into control and treatment groups in order to focus on the impact of a particular intervention. C. control how much of a treatment is given to each participant in order to measure the ideal quantity. D. are not a useful tool in assessing how specific interventions may influence economic development.
If suppliers of garbage collection services charged the full costs of providing the service, the supply curve would
a. change to a positive slope. b. change to a negative slope. c. shift to the left. d. shift to the right.
Which of the following statements is FALSE?
A. The value of total income is equal in value to total output because profit is a cost of production. B. Businesses sell goods and services to households who use their income to pay for them. C. Total income is always greater than total output. D. In the circular flow model, households sell factor services to businesses in return for factor payments.