Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets
b. loggers select the most profitable trees to harvest even when they are not paying per tree felled
c. Drivers of heavier, safer cares are more likely to run stop signs
d. workers on commission work harder than those paid an hourly wage
b
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Efficiency wages:
A) can decrease costs if workers' productivity varies directly with wage rates. B) can be used to reduce wage rigidity. C) can lead to wage rigidity. D) can increase profits if productivity of workers is fixed.
What is the total profit to the monopolist from selling the goods separately?
a. $4,500 b. $6,300 c. $7,000 d. $6,200
The highest point of the economy, before the recession begins, is called
a. the business cycle. b. an upswing. c. the peak. d. the trough.
Purchasing-power parity implies that the nominal exchange rate given as foreign currency per unit of U.S. currency must rise if the price level(s) in
a. foreign countries rise. b. the United States rises. c. all countries rise. d. all countries fall.