Examine how the invention of the seat belt may have created a moral hazard problem
Please provide the best answer for the statement.
Moral hazard is a tendency for an individual to alter her or his behavior when the situation changes. While many government officials believed the seat belt would save lives, it also caused individuals to drive more carelessly. The protection a seat belt offers created a moral hazard problem with individuals altering driving behavior.
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An oral auction
a. is also called a Vickrey auction b. is where bidders submit increasing bids until all but one remains c. is where the highest bidder wins and pays the amount of the next highest bid d. all of the above
A sudden decrease in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply