An example of moral hazard is
a. workers working diligently even though the boss is not looking
b. health care insured forgoing their diet and exercise
c. drivers of safer cars turning their phones off before driving
d. borrowers investing their loan proceeds exactly as the bank requires
b
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Which of the following does NOT describe a function of money?
A) unit of account B) barter C) medium of exchange D) store of value
Emissions permits might be called a "license to pollute."
a. True b. False Indicate whether the statement is true or false
A rational consumer maximizes her
a. preferences. b. marginal rate of substitution. c. utility. d. budget constraint.
Which of the following is least likely to be considered a firm in an imperfectly competitive industry?
A. Ohio Bell Telephone Company B. the only locally owned and operated bank in Severn, MD C. a wheat farmer in Kansas D. a Burger King in Pittsburgh, PA