________ arises when one party to a contract changes behavior in response to that contract, passing the cost of that change in behavior to the other party.
A. Moral hazard
B. Market signaling
C. Logrolling
D. Adverse selection
Answer: A
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The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will not even cover half of the true cost of the ACA
Indicate whether the statement is true or false
If a college sets its tuition __________ the equilibrium tuition, then it will have to use some form of nonprice-rationing device to determine who will be accepted for admission to the college
A) above B) below C) equal to D) all of the above
A nonrenewable resource:
A. can be replenished naturally over time. B. is used to regenerate an old piece of capital. C. is a production input that comes from the earth. D. All of these statements are true.
Intra-industry trade between similar countries produces economic gains because it allows workers and firms to learn and _________ on particular products.
a. innovate b. coordinate c. disseminate d. communicate