Moral hazard exists chiefly because of

A) economies of scale.
B) diseconomies of scale.
C) private information.
D) public information.

C

Economics

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Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year,

sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for Carl, and $10 million was paid for computers at the wholesale level. What was the firm's total contribution to GDP?

Economics

If ink and cartridge are consumed in specific proportion, the indifference curve for ink and cartridge is likely to be _____

a. a straight line b. downward sloping c. L-shaped d. U-shaped

Economics