It is a fact that the government spending multiplier is always greater than the tax multiplier

The problem of moral hazard arises because _____

a. individuals receive insurance through their employer, who has different incentives b. individuals with insurance have no incentive to avoid insured expenditures c. some individuals have religious objections to purchasing insurance d. some individuals are immoral

If your cumulative Grade Point Average (GPA) after two years of college is 3.0, and your grades for the current semester average 3.5, what will happen to your cumulative GPA? Explain the similarity of this example to the case of marginal cost and average cost.

What will be an ideal response?