Which of the following occurs when insurance makes a person more likely to engage in risky behavior?
a. lemon problem
b. moral hazard
c. adverse selection
d. risk selection
b
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Which of the following is NOT an example of a capital good?
A) a miner's cap B) a GPS tracking device C) a stethoscope D) a U.S. government bond E) an airport kiosk
The derived demand curve for a good component will be more inelastic
A) the larger is the fraction of total cost going to this component. B) the more inelastic is the demand curve for the final good. C) the more elastic are the supply curves of cooperating factors. D) the less essential is the component in question.
Unbundling mail services raises efficiency
Indicate whether the statement is true or false
According to the rational expectations school, expansionary fiscal policy is harmful to the economy, but expansionary monetary policy can be effective when the Fed tries specific targeting
Indicate whether the statement is true or false