Recall the Application about how having car insurance affects driving behavior to answer the following question(s).Recall the Application. The idea that an insured driver, who bears less than the full cost of a collision, will drive less carefully than an uninsured driver is an example of:
A. asymmetric information.
B. adverse selection.
C. moral hazard.
D. a thin market.
Answer: C
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Comparable worth advocates have proposed that employers be required by law to pay wage rates equal to the value of the job. The most telling objection to this proposal is that
A) employers will probably resist strenuously and successfully. B) it is in the interest of employers to adjust their hiring so as to make the value of the job equal to the wage rate that must be paid. C) the government has no legal authority to set wage rates in the private sector. D) this would leave little or nothing for profits.
Taxes in the United States as a percentage of GDP are among the highest in the world
a. True b. False Indicate whether the statement is true or false
Ex-London School of Economics student Mick Jagger sang, "You can't always get what you want, but if you try sometime, you just might find you can get what you need." Another statement of the basic economic principle expressed in this lyric is that
a. rational decisions are not always possible. b. you can allocate your resources to what gives you the highest value. c. you can create the supply to meet your own demand. d. you can maximize social welfare by making optimal decisions.
Given the Leontief production function Q = min{5.5K, 6.7L}, how much output is produced when K = 40 and L = 35?
A. 268 B. 192.5 C. 234.5 D. 220