Some automobile owners will drive faster knowing that they are covered by health and automobile insurance. This behavior creates the problem of
A) fraudulent claims.
B) moral hazard.
C) adverse selection.
D) pecuniary purchases.
B
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As owner of a one-third share of a partnership, Josh is legally liable for
A) none of its debts. B) one-third of its debts. C) all of its debts. D) all of its taxes but none of its private debt.
Marginal utility is the extra utility a consumer derives from consuming an extra unit of a good
a. True b. False
Which of the following statements is correct?
a. The demand for flat-screen computer monitors is more elastic than the demand for monitors in general. b. The demand for grandfather clocks is more elastic than the demand for clocks in general. c. The demand for cardboard is more elastic over a long period of time than over a short period of time. d. All of the above are correct.
In the above figure, the marginal propensity to consume (MPC) equals
A. 0.8. B. 0.9. C. 0.85. D. 0.75.