Moral Hazard
What will be an ideal response?
When one person takes more risks because someone else bears the burden of those risks.
You might also like to view...
The capture theory of regulation, espoused by George Stigler, asserts that
a. consumers "capture" regulatory agencies so that regulation favors consumers b. producers "capture" regulatory agencies so that regulation favors producers c. regulators "capture" producers and limit their market power d. consumers "capture" some consumer surplus lost to monopoly e. consumers and producers work together to "capture" regulatory agencies in order to achieve more desirable regulation
What happened that was unusual during the 1980s?
a. Debt soared due to a war. b. Debt soared during a time of peace. c. Debt plummeted due to a recession. d. Debt plummeted due to tax increases.
Human beings
A) have unlimited wants.
B) think they have unlimited wants, but really have limited needs.
C) have limited wants, but unlimited needs.
D) know what their needs are, but do not know what their wants are.
Give three examples of why new markets are created every day.
What will be an ideal response?