Moral Hazard describes a situation in which
a. buyers or sellers react to market signals by altering their behavior in ways that generate adverse market outcomes
b. an action by an individual that endangers others
c. an activity destroys all market outcomes
d. rational behavior is removed from market decision making
e. irrational behavior creates perverse market outcomes
A
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Dividend yield is:
a. the annual dividend payment per share. b. the annual dividend per share divided by the price of each share. c. the current stock price divided by the dividend per share. d. the year-on-year change in the annual dividend payment. e. the dollar value change in the stock price from the previous day's closing price.
Which statement is false?
A. The main liberal theories of poverty are employment discrimination, black male joblessness, and the inadequacy of human capital. B. William Julius Wilson sees racism and technological change as leading causes of black poverty. C. Barbara Ehrenreich and Frances Fox Piven call for a large government jobs program to wipe out poverty. D. None of these statements are false.
Consumer demand for DVDs has increased over time because the price of DVD players has:
A) decreased, and DVD players and video cassette players are substitute goods. B) decreased, and DVD players and video cassette players are complementary goods. C) increased, and DVD players and video cassette players are substitute goods. D) increased, and DVD players and video cassette players are complementary goods.
Producer surplus is the
A. area above the supply curve but below the market price of the good. B. maximum amount a producer can collect from consumers. C. area above the supply curve but below the demand curve. D. minimum amount required by a producer for producing the good.