An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without
b. people drive as safely with more airbags as without
c. football players 'spear' with their heads when tackling more often with safer helmets
d. people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription
c
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Last year you purchased 20 shirts at $15 apiece, 30 CDs at $12 each, and 5 sweaters at $25 apiece. This year you buy 20 shirts at $20 apiece, 30 CDs at $12 apiece, and 5 sweaters at $20 a apiece. If last year's index was 100, this year's index is
A) 91.3. B) 102.0. C) 109.5. D) 9.5.
Perfect price discrimination:
A. eliminates all consumer surplus. B. maximizes producer surplus. C. creates no deadweight loss. D. All of these statements are true.
An increase in the money supply is likely to
A. lower interest rates. B. raise interest rates. C. decrease the quantity of money demanded.
Which of the following kinds of market structure are NOT associated with market power?
A. Monopolistic competition B. Perfect competition C. Perfect competition and monopolistic competition D. Oligopoly