The phenomenon in which an insured individual takes less care in preventing the event against which she is insured is an example of
A) foolish behavior.
B) adverse selection.
C) moral hazard.
D) double coincidence of wants.
C
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Suppose the average value of in-kind transfers increases by $2,000 from 2013 to 2014 . The poverty rate
a. is more likely to understate the true level of poverty. b. is more likely to overstate the true level of poverty. c. will increase by $2,000 divided by the poverty level. d. Both b and c are correct.
In a market economy, the real power in the market place is held by the
a. producer b. seller c. government d. consumer
If professional boxing matches are on pay-per-view television, the price for viewing is ___________ than if it were provided on regular cable television and the equilibrium quantity is ___________.
a. lower, lower b. lower, higher c. higher, higher d. higher, lower
Refer to the graph below. If the output level is Q1, then the sum of the consumer and producer surplus is:
A. bce
B. ac0
C. 0abe
D. 0eQ1