Mark started taking guitar lessons when all his cousins started playing guitar. This is an example of ________
A) peer effect
B) moral hazard
C) adverse selection
D) a pecuniary externality
A
You might also like to view...
A seller's supply curve shows the seller's:
A. opportunity cost of producing an additional unit of output at each quantity. B. profit from producing an additional unit of output at each quantity. C. hourly wage for producing an additional unit of output at each quantity. D. willingness to pay for an additional unit of output at each quantity.
If the market clearing price of computer tablets rises from $400 to $600, and the market clearing output decreases from 5 million to 4 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
The figure below illustrates the impact of an export subsidy as imposed by a large country. No imports are permitted.
What is the net impact on the producer surplus of the export subsidy provided by the domestic government?
A. The producer surplus increases by area (a + b + c). B. The producer surplus increases by area (a + b + c + d). C. The producer surplus falls by area (a + b). D. The producer surplus falls by area (a + b + c + e + f + g + h).
Consider a labor market in equilibrium. If both demand curve and supply curve of labor shift to the right, then the number of workers hired in the market will:
A. increase. B. decrease. C. remain unchanged. D. either increase or decrease or remain unchanged.