Moral hazard is a
a. Pre-contractual problem
b. Post contractual problem
c. Post firing problem
d. None of the above
b
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When a person consumes two goods (A and B), that person's utility is maximized when the budget is allocated such that:
A) the marginal utility of A equals the marginal utility of B. B) the marginal utility of A times the price of A equals the marginal utility of B times the price of B C) the ratio of total utility of A to the price of A equals the ratio of the marginal utility of B to the price of A. D) the ratio of the marginal utility of A to the price of A equals the ratio of the marginal utility of B to the price of B.
In general, a plot of land goes to
A. whomever the government designates. B. the highest bidder. C. the person who can make the best use of it.
The law of demand can be explained as:
A. a lot of people wanting the same thing. B. the higher the price, the smaller the quantity demanded, ceteris paribus. C. people are willing to make limited sacrifices to acquire products. D. legal reasons people make purchases in the marketplace.
If the demand curve for a firm's output is P=100-Q, the marginal revenue curve will be
A. MR=50-2Q. B. MR=50-Q. C. MR=P*. D. MR=100-2Q.