If a person drives with less care after purchasing auto insurance, this situation would be an example of a(n):
A. Reverse wealth problem
B. Negative externality problem
C. Adverse selection problem
D. Moral hazard problem
D. Moral hazard problem
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In the figure above, ________ is a technologically efficient point
A) d B) f C) g D) None of the selections is correct.
Government savings, , is equal to
A) T - G. B) T + G. C) T = G. D) T + G - I. E) T - G = I.
Chris had a before-tax income of $20,000 and paid taxes of $3,000 . Pat had a before-tax income of $10,000 and paid taxes of $1,000 . Based on this information, which of the following is correct?
a. the tax system is regressive b. the tax system is proportional c. the tax system is progressive d. the tax system is based on the benefits received e. there is insufficient information to answer the question
The fact that every dollar that the government spends or transfers must ultimately be provided by the taxes and user charges it collects plus government borrowing is known as the
A. government budget constraint. B. tax collection constraint C. government balance sheet constraint. D. user charge constraint.