How does moral hazard matter in the market for insurance?
Once people have insurance, they have less incentive to be careful about risky behavior.
Economics
You might also like to view...
Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company’s hourly output varies with the number of workers hired, as shown in the table. Workers Pages/hour 0 0 1 40 2 75 3 105 4 125 5 140 6 150 7 155 If each page sells for $2 and the market wage is $15 per hour, then this firm will hire ______ workers per hour.
a. 4 b. 5 c. 6 d. 7
Economics
A person who performs supervisory activities will also be a _____ if she/he is financially responsible for investment and other contracted decisions
a. residual claimant b. director c. shareholder d. financial advisor
Economics