Which of the following is an example of moral hazard?
a. When a family's belongings are protected against theft and they take special care to look after the house.
b. An individual buys a new auto insurance policy which includes a special payment if the car skids on the ice and the person then begins driving recklessly on ice.
c. When a country expects assistance in the event of a currency crisis and therefore takes special care to avoid such a crisis.
d. When decision-makers expect special assistance in the event of an unfavorable outcome and their behavior changes in such a way to avoid that outcome entirely.
e. When a person with health insurance takes great care not to catch a serious cold.
B
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The effect of monetary policy on real output is ________ due to deregulation's effect on the LM curve alone, and ________ due to deregulation's effect on the IS curve alone
A) strengthened, strengthened B) strengthened, weakened C) weakened, strengthened D) weakened, weakened
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, the firm's marginal costs:
A. decrease until the 2nd unit, then increase. B. increase as output increases. C. increase until the 4th unit, then decrease. D. are constant.
Ceteris paribus, with a fixed exchange rate, if Americans decide to buy more Japanese-made television sets, this causes a market ________ of Japanese currency and creates a balance-of-payments ________ for the United States.
A. shortage; surplus B. surplus; surplus C. surplus; deficit D. shortage; deficit
Write down the national savings and investment identity.
What will be an ideal response?