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.
A. the tendency for people to behave in a riskier way after they have acquired insurance.
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In the figure above, Joe is producing at point A. Joe's opportunity cost of producing one shirt is
A) 5/3 of a pair of pants per shirt. B) 3/5 of a pair of pants per shirt. C) 5 pairs of pants per shirt. D) 2 pairs of pants per shirt.
A development strategy of import substitution eliminates the gains from specialization and comparative advantage in production among countries
Indicate whether the statement is true or false