In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?

If total utility increases at a decreasing rate as a consumer consumes more coffee, then marginal utility must

A) decrease. B) remains constant. C) be negative. D) increase also.

Moral hazard occurs when:

a. Individuals and institutions do not bear the full cost of their own mistakes. b. General social decay leads to unethical business decisions. c. The actions of one (or a few) result cause harm to others, when the same would not occur if the actions were by many. d. General social decay leads to unethical business decisions. e. All of the above are examples of moral hazard.