Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets
b. loggers clear-cut a tract of land rather than when paying per tree felled
c. Drivers of heavier, safer cares are more likely to run stop signs
d. workers paid an hourly wage work harder than those on commission
d
You might also like to view...
Which of the following should not be counted in a cost-benefit analysis?
a. direct benefits and costs b. real secondary benefits c. technological secondary costs d. pecuniary benefits e. intangibles
A person cutting up her credit cards in an effort to curb her spending is an example of:
A. status quo bias. B. a commitment device. C. the endowment effect. D. loss aversion.
A transfer of money from a NOW account to a money market fund causes
a. M1 to fall. b. M2 to rise. c. M3 to rise. d. both M1 to fall and M2 to rise.
The employee is thinking like an entrepreneur in which of the following situations?
A) A cashier rings up the total purchase price of the goods in the customer's cart. B) A staff member brings a plan to the supervisor which describes how to reduce costs and attract new customers. C) An employee attends a monthly staff meeting on company policies and procedures. D) An hourly employee goes to work and performs only the required tasks.