An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without
b. people drive less safely with more airbags as without
c. football players avoid 'spearing' with their heads even with safer helmets
d. people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription
b
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The standard of living (measured by what one can purchase with after-tax income) of free Americans on the eve of the Revolution was ______
a. lower than in 18th -century England, and lower than most people in the "Third World" today. b. higher than in 18th -century England, and higher than most people in the "Third World" today. c. lower than in 18th century England, but higher than most people in the "Third World" today. d. higher than in 18th- century England, but lower than most people in the "Third World" today.
Compared to higher-income families, low-income families would demand proportionately more of which of the following kinds of goods?
a. Luxury goods. b. Substitute goods. c. Normal goods. d. Inferior goods.
Economic models take into account the effect of trade on the distribution of income.
Answer the following statement true (T) or false (F)
Why would a high-wage nation oppose immigration?
What will be an ideal response?