Which is NOT an example of moral hazard
a. people eat less at all-you-can-eat buffets
b. loggers clear-cut a tract of land when paying a fixed price rather than when paying per tree felled
c. Drivers of heavier, safer cares are more likely to run stop signs
d. workers on commission work harder than those paid an hourly wage
a
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A flat tax: a. is designed so that everybody would pay the same number of dollars in taxes
b. is designed in such a way that as a person's income rises, the tax rate falls. c. is designed so that everybody would be charged the same percentage of their income. d. is designed to take a smaller percentage of higher incomes as compared to lower incomes.
Compared to 1960, in 2008 the proportion of retirees living in poverty has fallen from 35 percent to about _________ percent.
A. 5 percent B. 10 percent C. 15 percent D. 20 percent
If a change in the price of a good causes no change in total revenue
a. the demand for the good must be elastic. b. the demand for the good must be inelastic. c. the demand for the good must be unit elastic. d. buyers must not respond very much to a change in price.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.