Drivers with auto insurance being more likely to act carelessly is an example of:
A. asymmetric selection.
B. adverse selection.
C. information optimization.
D. moral hazard.
Answer: D
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The supply curve has a
A) negative slope. B) positive slope. C) slope equal to -1. D) undefined slope.
Gasoline and motel rooms are complements for many consumers. When the price of gasoline declines, consumers take longer vacations and rent more motel rooms. Therefore, the cross price elasticity between gasoline and motel rooms is
A. positive. B. negative. C. less than one because neither is a luxury. D. more than one because both are luxuries.
A production possibilities curve will shift inward
A) when the unemployment rate increases. B) when production is inefficient. C) when resources are expanding. D) when a war destroys the capital goods of a country.
An increase in the value people place on their actual time spent working will shift the labor ________ curve to the ________.
A. supply; right B. demand; left C. supply; left D. demand; right