Cross elasticity measures the consumer's change in demand brought about by a change in income

An example of moral hazard is

a. A taxi driver paid per mile taking the shortest route b. a piece-rate garment worker shirking less than a per hour worker c. an hourly salesman working harder than a commission salesman d. an author on contract going to as many book signings as one with a percentage royalty rate

In order to predict the marginal rate of return on investment, producers must forecast the interest rate

a. True b. False