Which of the following is not an example of a moral hazard problem?
a. A manager stays late one evening so that her employee can leave early to attend his child's music recital.
b. A small child takes an extra cookie from the cookie jar when he thinks his mom isn't watching him closely.
c. An employee plays solitaire on her computer at 4:30 p.m. on a Friday when her boss has left for the day.
d. A customer whose new eyeglasses come with a "60-day insurance policy in case of breakage" leaves her glasses out where her new puppy can chew on them.
a
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A current account surplus
A) poses a problem if domestic savings are being invested more profitably abroad than they would be at home. B) may pose no problem if domestic savings are being invested more profitably abroad than they would be at home. C) may pose no problem if domestic savings are being invested less profitably abroad than they would be at home. D) there is no relation between current account surplus and between savings and investment. E) poses a problem if domestic savings are being invested less profitably abroad than they would be at home.
Average variable costs:
A. always trend upward as output increases. B. always trend downward as output increases. C. decrease, then increase as output increases. D. increase, then decrease as output increases.
An example of a heuristic is:
A. predatory lending. B. a framing device. C. common sense. D. a rule of thumb.
Proprietors' income includes all of the following except
a. the income of unincorporated businesses. b. the income of partnerships. c. the income of sole proprietorships. d. the income of all businesses - incorporated and unincorporated .