When a moral hazard problem exists for automobile driving, the marginal cost of driving
A) is lowered, and the amount of driving done is raised above the efficient level.
B) is lowered, and the amount of driving done is lowered below the efficient level.
C) is raised, and the amount of driving done is raised above the efficient level.
D) is raised, and the amount of driving done is lowered below the efficient level.
E) is raised above the efficient level, but market forces keep the total amount of driving is kept at the efficient level.
A
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Historical data suggests that a trend toward ________ natural employment ________
A) larger, deficits from the early 1960s to the mid-1980s. B) larger, surpluses form the early 1960s to the mid-1980s. C) smaller, surpluses form the mid-1980s to 1995. D) larger, surpluses from the mid-1980s to 1995.
Projection bias:
A. is the tendency to evaluate future consequences based on tastes and needs at the moment of the decision making. B. is the tendency to project future states of mind into the present. C. can lead people to overestimate their adaptability. D. All of these are true about project bias.
The largest in-kind transfer program is:
a. Transitory Assistance to Needy Families. b. Medicaid. c. Social Security. d. SNAP (food stamps).
An explanation for why the short-run aggregate supply curve is upward-sloping is because: a. the quantity of real output supplied is inversely related to the aggregate supply curve. b. nominal incomes are fixed
c. the capital-output ratio is fixed. d. an increase in price will increase the marginal aggregate output.