If a person drives with less care after purchasing auto insurance, this situation would be an example of a(n)
What will be an ideal response?
moral hazard problem.
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The spread between interest rates on low quality corporate bonds and U.S. government bonds
A) widened significantly during the Great Depression. B) narrowed significantly during the Great Depression. C) narrowed moderately during the Great Depression. D) did not change during the Great Depression.
Sellers in a monopolistically competitive market may be regarded as “monopolists” of their ______.
a. average costs b. advertising c. trade networks d. own brands
Outsourcing leads to
A. Increases in total output, but with temporary job losses for some domestic workers. B. Decreases in total output, along with permanent job losses for some domestic workers. C. Decreases in total output, but with no changes in the number of domestic jobs available. D. Increases in total output, but with permanent job losses for some domestic workers.
An increase in individual income taxes ________ disposable income, which ________ consumption spending
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases