A person starting to drive more recklessly after signing a contract with an automobile insurance company is an example of

A) adverse selection.
B) moral hazard.
C) signaling.
D) screening.

B

Economics

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Differences in productivity can actually benefit society even when this results in increases in income inequality

Indicate whether the statement is true or false

Economics

Refer to Figure 10-1. Which of the following is consistent with the graph depicted above?

A) Technological change increases the profitability of new investment. B) Households become spendthrifts and begin to save less. C) An expected recession decreases the profitability of new investment. D) The government runs a budget surplus.

Economics