Alex just got a new car. Because Alex obtained full-coverage car insurance, Alex will have an incentive to ________ because of ________.
A. drive more cautiously than if he didn't have insurance; adverse selection
B. drive more cautiously than if he didn't have insurance; moral hazard
C. drive less cautiously than if he didn't have insurance; adverse selection
D. drive less cautiously than if he didn't have insurance; moral hazard
Answer: D
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Because of the recognition internationally of the principles of national sovereignty, nations cannot be affected by the policies of other nations and international governmental organizations
Indicate whether the statement is true or false
A downturn in business confidence may cause a ________ in j, and an ________ of the true user cost of capital, both depressing investment
A) rise, overestimate B) rise, underestimate C) fall, overestimate D) fall, underestimate
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP remains the same and reserve-related (central bank) transactions becomes more positive (or less negative). b. Real GDP falls and reserve-related (central bank) transactions remains the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following is not an example of in-kind transfers?
a. food stamps b. Medicaid c. the Earned Income Tax Credit d. housing vouchers