If the marginal utility to Juan of sleeping an extra hour (from 8 a.m. to 9 a.m.) is negative,
a. Juan is better off getting up at 8 a.m.
b. Juan is better off getting up at 9 a.m.
c. Juan's total utility from sleeping must be negative.
d. Juan's average utility from every hour he sleeps must be negative.
a
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Travel insurance (which pays a traveler if the traveler needs to cancel his or her trip) has a clause that states it will not pay if the trip is cancelled because of a pre-existing condition
If sick people are more likely to purchase travel insurance, this clause is meant to A) reduce moral hazard. B) reduce adverse selection. C) increase moral hazard. D) increase adverse selection.
There are frequently market solutions that the government can use to deal with externalities
a. True b. False Indicate whether the statement is true or false
Price ceilings often generate
A) market clearing prices. B) rapid increases in supply to meet the excess demand. C) equilibriums that utilize rationing by price. D) black markets.
The business practice of looking for a firm that has best practices in an area and then emulating those practices is called
A. decision management. B. organizational architecture. C. competitive markets. D. benchmarking.