The government of Genovia introduced an unemployment insurance that ensures full payment of former wages to unemployed workers
A study conducted a few months after the introduction of this policy showed that several unemployed workers in Genovia were not actively searching for work. Such behavior is an example of ________. A) adverse selection
B) moral hazard
C) the prisoners' dilemma
D) the free-rider problem
B
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The marginal social benefit from the production of the last unit of a good is $4,800. If the willingness to pay for that unit is $3,900, what is the external benefit from its production?
A) $900 B) $8,700 C) $3,800 D) $4,100
What is a repurchase agreement?
What will be an ideal response?
Inflationary recessions
A. cannot possibly occur. B. have not occurred over the last 50 years. C. are easily dealt with by conventional monetary and fiscal policies. D. have occurred during 1970's and 1980's.
Money as a medium of exchangeI.Facilitates the exchange of goodsII.Reduces the incentive to barter
A. I only B. II only C. Both I and II D. Neither I nor II