Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets
b. loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled
c. Drivers of heavier, safer cares are less likely to run stop signs
d. workers on commission work harder than those paid an hourly wage
c
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The circular flow model shows that goods and services flow from
A) businesses to households. B) households to business. C) the factor market to businesses. D) the goods market to businesses. E) the factor markets to the goods markets.
Should the home country be "large" relative to its trade partners, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms of the trade rectangle exceed the sum of the
A) revenue effect plus redistribution effect. B) protective effect plus revenue effect. C) consumption effect plus redistribution effect. D) production distortion effect plus consumption distortion effect. E) terms of trade gain.
In the textbook model of endogenous growth, long-run output growth would increase if there were either a ________ in the saving rate or a ________ in the depreciation rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
The accumulation of scientific evidence can
A. resolve normative disputes. B. resolve positive disagreements. C. determine whether one person's gain is more important than another person's loss. D. always settle disputes over public policy.