To see how variables evolve over time we use

An example of moral hazard is

a. people drive as carefully in icy conditions with antilock brakes as without b. people drive as safely with more airbags as without c. football players avoid 'spearing' with their heads even with safer helmets d. people fail to read the medicine warnings more often when self-medicating versus with a doctor's prescription

Suppose a wind turbine is located in a residential area. The noise from the turbine imposes a cost on the households that live near the turbine. However, if the turbine company has to reduce the noise level, it has to incur huge costs, which will significantly reduce the value of the turbine operation. According to the Coase Theorem, which of the following is the best solution? a. The turbine

company should be assigned the property rights to operate in the locality. b. The households in the locality should be assigned the property rights to stop any noise pollution from the turbine operation. c. The government should impose a command-and-control regulation. d. The property rights can be given to either party, provided the rights are clearly specified.