Moral hazard implies that
a. Insured individuals exercise less care because they have less incentive to do so
b. Insured individuals exercise more care because they have less incentive to do so
c. Insured individuals exercise more care because they have more incentive to do so
d. Insured individuals exercise less care because they have more incentive to do so
a
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Starting from long-run equilibrium, the long-run impact(s) of an increase in autonomous consumption, compared to the original equilibrium, is:
A. higher inflation and the same output. B. lower inflation and the same output. C. lower inflation and lower output. D. higher inflation and higher output.
Suppose the local university charges $85 per credit hour. If tuition increases from $85 to $93 per credit hour, using the midpoint method, what is the percentage change in price?
A) 8.99 percent B) 8.00 percent C) 9.41 percent D) 8.62 percent E) 9.12 percent
What is the implication of the demographic transition for the labor force? Dependency ratio?
What will be an ideal response?
A consumer purchases housing (H) and spends the remainder of income on the composite good (C). The government is considering one of two policies. Policy A taxes housing by $50 per unit consumed
With the tax in place, the consumer purchases 100 units of housing. Policy B collects a lump-sum tax of $5,000 from the consumer's income. Compare the effects of the policies on the consumer's utility/well-being and the amount of housing and composite goods purchased.