Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of one of the bottles is $27 dollars, total consumer surplus will be
A) $0. B) $14. C) $26. D) $53.
C
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The tendency of those who are insured to take more risks as a result is a problem of: a. free riding
b. moral hazard. c. adverse selection. d. positive externalities.
Which of the following statements about fiscal policy and time lags is most likely correct?
a. The time lag for fiscal policy is typically longer than the time lag for monetary policy. b. The time lag for fiscal policy is typically shorter than the time lag for monetary policy. c. The time lag for fiscal policy is typically about the same as the time lag for monetary policy. d. The time lag for fiscal policy is typically exactly the same as the time lag for monetary policy.
Which of the following is adverse selection?
a. the risk associated with selecting stocks in only a few specific companies b. the risk that a person will become overconfident in his ability to select stocks c. a high-risk person being more likely to apply for insurance d. after obtaining insurance a person having less incentive to be careful
Suppose that under its collective bargaining agreement the XYZ Corp can hire nonunion workers, but these workers must join the union within 60 days. This agreement is an example of
A) an open shop. B) a closed shop. C) a company union. D) a union shop.