The problem of moral hazard arises because _____
a. individuals receive insurance through their employer, who has different incentives
b. individuals with insurance have no incentive to avoid insured expenditures
c. some individuals have religious objections to purchasing insurance
d. some individuals are immoral
b
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If neither employers nor consumers are prejudiced,
a. discrimination cannot occur b. all wages will be equal for all workers c. there will be no non-ability-based wage differentials between different groups of workers d. statistical discrimination may still occur e. all equally qualified potential workers have an equal chance of employment and advancement
Which of the following is true of a natural monopoly? a. The quantity supplied in the market is less than the quantity at which the long-run average cost is minimum. b. The quantity supplied in the market is equal to the quantity at which the long-run average cost is minimum. c. The firm produces at the minimum point of the marginal cost curve
d. The quantity demanded in the market corresponds to the price at which the marginal revenue and marginal cost curves intersect.