Relating to the Economics in Practice on page 362: The smart phone app which allows skiers at a slope to report weather conditions to others could be considered a form of
A. moral hazard.
B. risk-loving.
C. market signaling.
D. asymmetric information.
Answer: C
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What is a term referring to a table that shows the quantity supplied at a range of different prices?
a. demand curve b. demand schedule c. supply curve d. supply schedule
The paradox of thrift tells us that even though people try to save more, they end up saving
a. no more than they did before and maybe even less depending on the shape of the investment curve b. no more than they did before and maybe even less depending on the shape of the consumption curve c. no more than they did before and maybe even less depending on the shape of the saving curve d. no more than they did before and maybe even less depending on the shape of the national income curve e. even more than they anticipated because thrift is always good
Under a system of financial penalties for polluters:
a. Firms could pollute all they wanted to. b. Firms would have to pay a tax for each unit of pollution created. c. Firms would be encouraged to pollute less. d. All of the above are correct.
Rent-seeking activity by firms
A. often wastes economic resources. B. increases economic efficiency. C. continues even when an industry is in long-run competitive equilibrium. D. increases the total amount of economic rent available.