An example of moral hazard is
a. people drive less carefully in icy conditions with antilock brakes than without
b. people drive as safely with more airbags as without
c. football players avoid 'spearing' with their heads even with safer helmets
d. people read the medicine warnings as carefully when self-medicating as with a doctor's prescription
a
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In an open economy, the domestic real interest rate is determined by:
A. domestic saving and domestic investment. B. domestic investment. C. domestic saving, domestic investment, and net capital inflows. D. domestic saving and net capital inflows.
Refer to the information above. What is the level of consumption when the level of income is 850?
A) 375 B) 425 C) 450 D) 475
If the instrumental variable estimator has an upward bias, the ordinary least square estimator always has a downward bias.
Answer the following statement true (T) or false (F)
An isoquant represents levels of capital and labor that
A) have constant marginal productivity. B) yield the same level of output. C) incur the same total cost. D) All of the above.