US law was recently changed so that some airplane manufacturers are immune from liability from accidents involving their decades old aircraft. As a result
a. accident rates fell due to less adverse selection
b. accident rates fell due to less moral hazard
c. accident rates rose due to less adverse selection
d. accident rates rose due to less moral hazard
b
Economics
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What are the main advantages and disadvantages of organizing a business as a corporation?
What will be an ideal response?
Economics
Suppose Congress enacts investment tax credits to spur more business investment. What impact would this have on the loanable funds market?
a) There would be an increase in supply; the supply curve shifts right. b) There would be a decrease in supply; the supply curve shifts left. c) There would be an increase in demand; the demand curve shifts right. d) There would be a decrease in demand; the demand curve shifts left.
Economics