Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets
b. loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled
c. Drivers of heavier, safer cares are more likely to run stop signs
d. workers paid an hourly wage work harder than those on commission
d
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Left shoes and right shoes are perfect complements. An indifference curve for left and right shoes is a line with
A) constant slope. B) a 30-degree angle. C) a 45-degree angle. D) a 90-degree angle.
Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics decreases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium quantity of university economics professors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium quantity.
The purchasing power parity theory of exchange rate determination holds that the exchange rate between any two national currencies is fixed to reflect differences in the price levels in the two countries
Indicate whether the statement is true or false.
For a fixed percent reduction in pollution emissions to be economically efficient, it would have to be the case that
A. enforcement is vigorous. B. the marginal cost of pollution control is the same across all firms. C. all firms be the same size. D. large polluters reduce emissions by more than small polluters.