Moral hazard:
A. is a normative judgement about the moral choices made by economic agents.
B. is about actions and occurs after the parties have voluntarily entered into an agreement.
C. is always present when adverse selection arises.
D. All of these statements are true.
B. is about actions and occurs after the parties have voluntarily entered into an agreement.
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Which of the following best illustrates your marginal benefit from studying?
A. The knowledge you gain from studying 2 hours a night for a month B. The best things forgone by studying 2 hours a night for a month C. What you are willing to give up to study for one additional hour D. What you must give up to be able to study for one additional hour
Most economists support open trade because it increase our choices as consumers, lowers costs for producers, increases competition and innovation, and leads to greater diffusion of technological change
Indicate whether the statement is true or false