The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. closed circuit TVs throughout a warehouse
c. GPS tracking devices in repair trucks
d. requiring physicians to be 'board certified'
d
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Use the following diagrams to answer the next question.
Assume the economy is on aggregate demand AD1. The Fed should ________.
A. move from MS1 to MS3 to raise interest rate and raise investment B. move from MS1 to MS3 to raise interest rate and lower investment C. move from MS1 to MS2 to lower interest rate and lower investment D. move from MS1 to MS2 to lower interest rate and increase investment
A model's predictions are referred to as:
A) statistics. B) theories. C) hypotheses. D) empirical evidences.
A profit-maximizing firm in a competitive market will increase production when average revenue exceeds marginal cost
a. True b. False Indicate whether the statement is true or false
What does each party in international trade anticipate from the exchange?
a. reinforcement of its cultural heritage b. an imbalance in the trade relationship c. improvement in its economic welfare d. deception on the part of its trading partners