Individuals with homeowner's insurance tend to be more forgetful about locking their possessions safely before heading out. This is an example of
a. Adverse selection
b. Moral hazard
c. Screening
d. None of the above
b
You might also like to view...
In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed
A) sold $200 in government bonds. B) sold $500 in government bonds. C) purchased $200 in government bonds. D) purchased $500 in government bonds.
Suppose that opportunity costs in India and Australia are constant. In India, maximum feasible hourly production rates are either 0.3 unit of cloth or 0.2 unit of food
In Australia, maximum feasible hourly production rates are either 0.5 unit of cloth or 0.5 unit of food. It is correct to state that A) India has a comparative advantage in producing cloth. B) India has a comparative advantage in producing both cloth and wheat. C) India has no comparative advantage in producing cloth or wheat. D) Australia has a comparative advantage in producing cloth.
If both the supply and demand curves shift to the left, then we can conclude that there will be a(n): a. increase in the equilibrium quantity sold. b. decrease in the equilibrium quantity sold. c. increase in the equilibrium price
d. decrease in the equilibrium price.
Which of the following factors can result in a nation developing a comparative advantage?
a. an abundance of highly skilled labor. b. large amounts of unskilled labor. c. a favorable climate. d. All of these.