A person who practices poisonous snake charming and does not reveal this to her health insurance company before purchasing insurance is an example of
A) moral hazard.
B) adverse selection.
C) signaling.
D) screening.
B
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The tying down of the price level to a nominal variable by the central bank is known as committing to ________
A) a nominal anchor B) rational expectations C) a customs union D) a positive aggregate demand shock
Refer to Table 17-20. If Maddie chooses not to clean, then Nadia will
a. clean and Maddie's payoff will be 50.
b. clean and Maddie's payoff will be 30.
c. not clean and Maddie's payoff will be 7.
d. not clean and Maddie's payoff will be 10.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.
Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will:
A. cause an international surplus of its currency. B. contribute to disequilibrium in its balance of payments. C. cause gold to flow into that country. D. cause its imports to rise.