?An example of moral hazard is
a. A taxi driver paid per mile taking a longer route than necessary
b. a piece-rate garment worker shirking more than a per hour worker
c. an hourly salesman working harder than a commission salesman
d. an author on contract going to as many book signings as one with a percentage royalty rate
Answer: a. A taxi driver paid per mile taking a longer route than necessary
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A) managed float B) flexible C) gold standard D) Bretton Woods
As new firms enter a market, the equilibrium price will
a. rise. b. fall. c. stay the same. d. impossible to predict.
The general category of taxes that include unit taxes, sales taxes, and customs duties, is known as a(n)
a. excise tax b. internal tax c. external tax d. estate tax e. property tax
Nominal monthly wages increase from $1,500 to $1,800 while the price level increases by 4 percent. The percentage change in real monthly wages is about:
A. 10 percent B. 12 percent C. 14 percent D. 16 percent