Which of the following actions by Alonzo would represent moral hazard?
a. cutting back on his sugar and fat intake to reduce his cholesterol numbers
b. taking riskier jumps on his bike since he has insurance to cover injuries
c. continuing to do what he has always done now that he has health insurance
d. accepting work at a dangerous job even though he is uninsured
b. taking riskier jumps on his bike since he has insurance to cover injuries
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When the government steps in to help determine prices, it is called
a. price ceilings. b. price floors. c. equilibrium prices. d. price control.
If a person uses money to buy a pair of shoes, money is functioning as
A) a unit of account. B) a store of value. C) a medium of exchange. D) none of the above
What should happen to the equilibrium price and quantity in a market as a result of a quota on imports?
A. Equilibrium price should go down, and equilibrium quantity should go up. B. Equilibrium price and quantity should both go up. C. Equilibrium price should go up, and equilibrium quantity should go down. D. Equilibrium price and quantity should both go down.
Suppose that Mexico devalues the peso. What objectives would prompt the devaluation? Be specific.
What will be an ideal response?