Which of the following practices are, at least in part, attempts to reduce moral hazard problems?
a. Parking ramps require customers to take a ticket with the time stamped on it from a machine in order to gain entrance.
b. Factory workers are paid by the hour.
c. A restaurant owner works long hours in order to make more profit.
d. None of the above are correct.
d
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A firm is operating with an optimal combination of inputs. Suddenly the price of one input rises. The firm should
a. buy less of that input and more of the other input. b. change its input mix so that the marginal physical product of the input whose price has risen falls and the marginal physical product of the other input rises. c. buy less of whichever input now has the highest money price and more of the other input. d. reduce its output.
If the total sum of squares (SST) in a regression equation is 81, and the residual sum of squares (SSR) is 25, what is the explained sum of squares (SSE)?
A. 64 B. 56 C. 32 D. 18
Imagine an economist ordering pizza by the slice. When deciding how many slices to order, she would pick that number where the enjoyment of the ________ equals the enjoyment she could get from using the money on another good.
A. average slice B. first slice C. last slice D. total number of slices
How much money can a bank loan if it receives an initial deposit of $4,000 and the required reserve ratio is 20%?
a) $800 b) $3,200 c) $4,000 d) $20,000