Regarding business conditions during the 1930s, which of the following events did not occur?
(a) The number of patents applied for declined.
(b) The number of mergers between companies increased in an attempt to increase
their consolidated strength.
(c) Some interest rates, such as the prime rate, fell to less than 1%.
(d) In the early years of the Depression, business investment spending on plants and
equipment was not enough to increase or maintain the country's capital stock.
(b)
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The welfare loss of a tariff equals that of a import quota that leads to the same level of imports
Indicate whether the statement is true or false
In the context of insurance, moral hazard refers to:
A. the tendency for people to behave in a riskier way after they have acquired insurance. B. the tendency for high-risk individuals to seek out more insurance than low-risk individuals. C. when people organize themselves in a group to collectively absorb the cost of the risk faced by each individual. D. when risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual.