John takes out a student loan at a bank but spends his money in Las Vegas to play at the casino. This situation is an example of

A) moral hazard.
B) moral suasion.
C) adverse selection.
D) fraud.


A

Economics

You might also like to view...

"A firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is the previous statement correct or incorrect?

What will be an ideal response?

Economics

A firm that sells at a price below average cost is losing money.

Answer the following statement true (T) or false (F)

Economics

Economic profit is defined as

a. total revenue minus price b. price minus quantity c. total revenue minus what must be paid to resources to attract them from their best alternative use d. total revenue divided by what must be paid to resources to attract them from their best alternative use e. total revenue plus what must be paid to resources to attract them from their best alternative use

Economics

Regarding structural deficits, which of the following assertions is true? a. The structural deficit depends on the state of the economy

b. The structural deficit is basded on actual expenditures and receipts. c. The structural deficit change only when policy changes. d. The structural deficit changes when GDP changes.

Economics