The major way that the government supports crop prices is by granting nonrecourse loans to farmers

A firm replaces a machine by hiring 3 hourly production workers instead. a. Both its fixed and variable costs will fall

b. Both its fixed and variable costs will rise. c. Its fixed costs will rise and its variable costs will fall. d. Its fixed costs will fall and its variable costs will rise.

If a hospital knows that an insurance company will pay for most of a patient's bill, the hospital has more of an incentive to require additional medical procedures and tests, even if the patient may not require them. This is an example of

A) moral hazard. B) the principal-agent problem. C) asymmetric information. D) adverse selection.