The difference between moral hazard and adverse selection is
a. moral hazard has to do with unobservable characteristics of individuals
b. moral hazard has to do with unobservable actions of individuals
c. adverse selection is when individuals change their behaviors because of a contract
d. adverse selection is when you choose the wrong answer on a test
b
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The international bank deposit and loan market is called the
A) International Banking Facilities. B) Eurocurrency market. C) Foreign exchange market. D) IMF loans and deposits.
If prices and income in a two-good society double, what will happen to the budget line?
A) The intercepts of the budget line will increase. B) The intercepts of the budget line will decrease. C) The slope of the budget line may either increase or decrease. D) Insufficient information is given to determine what effect the change will have on the budget line but we know society is worse-off. E) There will be no effect on the budget line.
Social Security contributions are
A) a voluntary dollar amount that people contribute towards Social Security. B) entirely paid by your employer. C) mandatory taxes partially paid out of workers' wages and salaries. D) collected only from people earning more than $120,000 a year.
Experience ratings provide firms with an incentive NOT to:
A. hire older workers. B. invest in health and safety programs. C. hire disabled workers. D. both hire older workers and hire disabled workers