Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off
Indicate whether the statement is true or false
TRUE
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Between 1960 and 2010, the labor force participation rate for women
A) increased until about 1996. B) decreased in most years. C) did not change. D) first rose sharply and then, after 1996, fell equally sharply. E) did not change until 1992, after which it generally increased.
According to the textbook, the noise of jet engines is not a negative externality for baggage handlers
A) because it leaves no residue in the environment. B) because the benefits are greater than the costs. C) because they are paid to live with the noise. D) because they wear hearing-protection devices. E) unless it leaves them with permanent hearing loss.
In the long run, firms can vary all inputs in the production process
a. True b. False Indicate whether the statement is true or false
Marginal product refers to ______, and marginal revenue product refers to______.
a. labor; the value of economic and accounting profits b. a change in output; revenue gained from that change c. capital; income gained through investments in capital d. derived demand for labor; an increase in profitability