Moral hazard is:
A. when people engage in behavior that is considered highly desirable by the person who bears the cost of the behavior.
B. when buyers and sellers have different information about the quality of a good or the riskiness of a situation.
C. when buyers and sellers with the same information about the quality of a good or the riskiness of a situation agree to a somewhat shady deal.
D. the tendency for people to behave in a riskier way or provide less effort when they do not face the full consequences of their actions.
D. the tendency for people to behave in a riskier way or provide less effort when they do not face the full consequences of their actions.
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Which of the following will NOT shift the Keynesian short-run aggregate supply curve?
A) a change in input prices B) a change in technology C) a change in the price level D) a change in profit expectations
If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $2 and they are paying the profit-maximizing wholesale price of $8, what is the retail price of the product?
A) $6 B) $8 C) $2 D) $10
Angelee works for a major corporation overseeing quality control, and she earns $50,000 per year. She uses about ten percent of her pay to purchase household items, such as appliances, and spends another two percent on travel. She buys stock with about five percent of her pay. Explain which of her actions are part of the factor market and why?
What will be an ideal response?
A merger between a maker of household detergents and a fast-food chain would be an example of:
A. a horizontal merger. B. an interlocking directorate. C. a conglomerate merger. D. a tying contract.