Suppose the new doctor you found in the yellow pages turns out to be a charlatan. This is an example of
a. natural selection
b. moral hazard
c. hidden actions
d. external costs
e. hidden characteristics
E
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Suppose that there is a decrease in the costs of production that shifts the short-run aggregate-supply curve right. If there is no policy response, then eventually
a) because unemployment is high, wages will be bid up and short-run aggregate-supply curve will shift right. b) because unemployment is high, wages will be bid down and short-run aggregate-supply curve will shift right. c) because unemployment is low, wages will be bid up and short-run aggregate-supply curve will shift right. d) because unemployment is low, wages will be bid up and short-run aggregate-supply curve will shift left.
A good example of the government commandeering resources is
a. government subsidizing road construction b. the Pharaohs building the pyramids c. Bill Gates creating Windows 95 with a government issued patent d. Thomas Edison inventing the light bulb e. government taxing Disneyland