Joseph starts driving with much less care after buying car insurance. His behavior is an example of ________
A) moral hazard
B) a domino effect
C) adverse selection
D) herd behavior
A
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The receiver of a message is the __________ or audience
a. Communicator b. Sender c. Destination d. Channel
A car dealership union negotiates a contract that dramatically increases all salesmen salaries. If one of the salesman is thinking of changing careers to be a hardware salesman, his opportunity cost
a. would not be affected b. would increase if he continued to be a car salesman c. of becoming a hardware salesman would increase d. none of the above
If the rate of inflation is zero, prices are expected to remain stable, and the nominal rate of interest is 3 percent, then the
A) real rate of interest is equal to the nominal rate. B) real rate of interest is less than the nominal rate. C) nominal rate is greater than the real rate of interest. D) investment demand schedule will shift upward.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $5.00. Tom's monthly income is
A. $40. B. $100. C. $200. D. $400.