An example of moral hazard is
a. workers working diligently even though the boss is not looking
b. health care insured dieting and exercising
c. drivers of safer cars turning their phones off before driving
d. borrowers investing their loan proceeds differently than the bank requires
d
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The table above shows four methods for producing 10 computer desks a day. If the cost of a worker is $50 a day and the cost of capital is $150 a day, ________ economically efficient
A) method A is B) method B is C) method D is D) method A or C is
First, briefly explain why the AD curve is downward sloping in a closed economy. Second, briefly explain why the AD curve is downward sloping in an open economy under fixed exchange rates. And finally, briefly compare the size of the slopes of the two AD curves
What will be an ideal response?