Moral hazard is:
A. when individuals make exchanges in the grey market.
B. the tendency for people to behave in a riskier way when they're insured.
C. when one party acts in a way that is ethically outside the norm in a market exchange.
D. when both parties act in a way that is ethically outside the norm in a market exchange.
B. the tendency for people to behave in a riskier way when they're insured.
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The demand for a product is likely to be more elastic:
a. the smaller the share of the total budget spent on the product. b. when more complementary products are available. c. in the short run than in the long run. d. when more good substitutes for the product are available.
What was the approximate value of U.S. GDP in 2015?
A. $12.3 billion B. $12.3 trillion C. $17.9 trillion D. $17.9 billion
The law of one price means that prices eventually will be the same in all countries and eventually countries will not have a reason to trade.
Answer the following statement true (T) or false (F)
If output is greater than planned aggregate expenditure, there will be
A. an unplanned decrease in inventories. B. no change in inventories. C. an unplanned increase in inventories. D. a planned increase in inventories.