An example of moral hazard is
a. people drive less carefully in icy conditions with antilock brakes than 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 read the medicine warnings as carefully when self-medicating as with a doctor's prescription
a
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Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount
a. True b. False Indicate whether the statement is true or false
Total world output can increase without the addition of resources if
A. countries specialize in the product in which they have an absolute advantage and trade for products in which they have an absolute disadvantage. B. countries specialize in the product in which they have a comparative advantage and trade for products in which they have a comparative disadvantage. C. countries impose tariffs on the goods in which they have a comparative advantage. D. countries replace tariffs with quotas.