Robert got a new job and relocated to a different city. He initially decided to rent a small apartment close to his office
However, he decided to live in a much bigger and costlier apartment when he found out that his employer will pay him a house rent allowance. This is an example of ________. A) adverse selection
B) moral hazard
C) the prisoners' dilemma
D) the free-rider problem
B
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Which of the following events shifts the aggregate demand curve leftward?
A) an increase in consumption expenditures B) a decrease in taxes C) a decrease in government expenditures on goods and services D) an increase in net exports of goods and services
Which of the following would cause an increase in the demand curve for oranges?
a. a freeze in Florida (a major orange producing state) b. a new machine that allows orange growers to harvest oranges faster c. a decrease in the price of apples d. an announcement by the FDA that oranges lowers cholesterol
Which of the following changes will shift the money demand curve rightward?
What will be an ideal response?
Which of the following, if true, would most effectively back the argument that raising cigarette taxes reduces the number of people who smoke cigarettes?
A. The supply for cigarettes is relatively inelastic. B. The supply for cigarettes is relatively elastic. C. The demand for cigarettes is relatively elastic. D. The demand for cigarettes is relatively inelastic.