An example of moral hazard is
a. A taxi driver paid per mile taking a longer route than necessary
b. a piece-rate garment worker shirking more than a per jour worker
c. an hourly salesman working harder than a commission salesman
d. an author on contract going to as many book signings as one with a percentage royalty rate
a
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Compared to a single-price monopoly, the price charged by a perfectly competitive market with the same costs
A) is higher than the monopoly's price. B) is the same as the monopoly's price. C) is lower than the monopoly's price. D) could be higher than, lower than, or the same as the monopoly's price.
If demand is perfectly elastic, then
a. the demand curve is a horizontal line b. supply is perfectly inelastic c. supply is perfectly elastic d. the demand curve is a vertical line e. the demand curve is downward sloping
A shift from S1 to S2 represents
A. an increase in supply.
B. a decrease in supply.
C. no change in supply.
To aggregate 300 tons of steel, 5,000 bushels of wheat, and 1 million barrels of crude oil, economists add together the ________ of the three products
A. units B. weight C. number of tons, bushels, and barrels D. dollar value