Which of the following would be LEAST likely to contribute to a moral hazard problem among drivers?
A) Provide medical coverage to all drivers, their passengers, and any and all individuals involved in the accident, no matter who was at fault.
B) Provide medical coverage and car repair/replacement coverage to drivers, their passengers, and any and all individuals involved in the accident, no matter who was at fault.
C) Modify all cars to remove the driver's seatbelt and the steering wheel air bag.
D) Pass a law limiting the amount of damages that juries may award in accident cases.
E) Make automobile insurance mandatory for all drivers.
C
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Which of the following is true concerning the impact of tariffs and quotas?
a. Tariffs raise the price of a good but quotas do not. b. Tariffs reduce consumer and producer surplus whereas quotas reduce domestic consumer surplus and increase domestic producer surplus. c. Both tariffs and quotas increase the quantity demanded. d. The revenue resulting from a tariff goes to the government whereas the revenue resulting from a quota goes to whoever is awarded the right to sell the product. e. The potential welfare loss is greater with tariffs than quotas.
Concerns over unpleasant or unsafe standards of foreign labor do not affect most of U.S. trade because most U.S. trade is intra-industry and carried out with
a. high-income countries that have labor standards similar to the United States. b. low-income countries that have labor standards similar to the United States. c. high-income countries that have lower labor standards than the United States. d. low-income countries that have lower labor standards than the United States.