Buying insurance can create a moral hazard
Indicate whether the statement is true or false
True
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Answer the following statement(s) true (T) or false (F)
1. Risk is the chance of something bad happening. 2. Risk analysis is an important element of environmental policy development. 3. Risk that is deliberately assumed is considered involuntary risk. 4. Exposure to passive or secondhand smoke is a type of voluntary risk. 5. Both hazard and exposure define environmental risk, but each can independently affect the outcome.
The Gramm-Rudman-Hollings Act of 1985 created a
A. Mandated balanced budget by 2005. B. Debt ceiling. C. Prohibition against external financing of the debt. D. Deficit ceiling.
Which of the following is an example of a negative externality?
A) There is an increase in injuries to pedestrians caused by accidents resulting from electronic billboards distracting drivers.
B) The opening of a new shopping mall increases the business of nearby restaurants.
C) A consumer pays a higher price than another consumer does for the same product.
D) Consumers pay a sales tax in addition to the price of a product.
In the Keynesian model, in a depression
A. the economy operates in the horizontal range of the AS curve. B. prices and wages are flexible. C. the interest rate adjusts until desired saving equals desired investment. D. All of the choices are true.