Government regulations designed to reduce the moral hazard problem include
A) laws that force firms to adhere to standard accounting principles.
B) light sentences for those who commit the fraud of hiding and stealing profits.
C) state verification subsidies.
D) state licensing restrictions.
A
You might also like to view...
The classical assumption that labor markets clear makes it difficult for that model to explain recessions
a. True b. False
A contractionary monetary policy leads to higher interest rates that discourage consumer borrowing for big-ticket items, such as houses and cars
a. True b. False Indicate whether the statement is true or false
Assume men, on balance, have lower amounts of human capital than women have. Then we would expect
a. the demand for female labor to be lower than the demand for male labor. b. the demand for female labor to be higher than the demand for male labor. c. the supply of female labor to be lower than the demand for male labor. d. the supply of female labor to be higher than the supply of male labor.
Parallel markets is another term for:
a. government interventions. b. interbank trades. c. black markets. d. trade in goods and in services