Refer to Scenario 17.3. Moral hazard would be eliminated in this situation if
A) the insurer would always charge $300.
B) the insurer would always charge $6000.
C) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium upward if it is not.
D) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium downward if it is not.
E) the fire did not occur.
C
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On a graph, to determine the price a profit-maximizing monopolist would charge, find the quantity at which MC and MR intersect and read up to the demand curve
a. True b. False
Refer to the table below. If demand decreased by 4 units at each price, what would the new equilibrium price and quantity be?
A. $3 and 5 units
B. $4 and 6 units
C. $5 and 7 units
D. $6 and 8 units
In the above table, the level of autonomous consumption is
A. $0. B. $5,000. C. $1,000. D. $9,000.
If income is $40 billion, the price level is 10, and the stock of money is $20 billion, what is the velocity of money?
A. 0.8 B. 5 C. 8 D. 20