Moral hazard is illustrated by people who take greater risks after they purchase insurance
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Economic efficiency definitely occurs whenever
A) a firm cannot increase its output without increasing all its inputs. B) there are no implicit costs. C) the most modern technology is used in the production process. D) the firm produces a given output at the least cost.
According to the real business cycle model, a rightward shift in the long-run aggregate supply schedule would be caused by ________
A) a negative supply shock B) an increase in aggregate demand C) a positive supply shock D) a decrease in aggregate demand
Which of the following is a reason to study the decisions of price takers?
a. While there are not many price-taker markets, these few markets dominate the economy. b. The decision making of both price searchers and price takers is identical. c. The price-taker model enhances our knowledge of competition as a dynamic process. d. Price takers are the most common type of business in the real world.
The higher the opportunity cost of making a new friend, the more likely one is to make a new friend, ?ceteris paribus?
Indicate whether the statement is true or false