Christine works as a receptionist in an office. She is not supposed to use the Wi-Fi connection provided by the company to access social-networking Web sites
However, she often uses the Wi-Fi to access these Web sites because her browsing activities are not monitored by her employer. This is an example of ________. A) adverse selection
B) moral hazard
C) a positive externality
D) a free-rider problem
B
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When the United States cannot produce all of the goods and services desired by its citizens, the economy is
A) in a deep freeze. B) inefficient. C) in a shortage state. D) facing scarcity.
When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions
A) "what" B) "for whom" C) "how" D) "why"
Dividing the dividend payment by the stock's closing market price determines the
A) dividend yield. B) coupon payment. C) price-earnings ratio. D) selling price of the stock.
The assumption(s) made to construct a kinked-demand oligopoly model is (are) that:
a. all firms in the industry will ignore the price changes made by any one firm. b. any price decrease will be ignored, but price increases will be followed. c. all firms will follow a price decrease but will ignore any price increase. d. all price changes made by any firm will be followed by all of the other firms. e. price can go up, but it cannot go down.