Depositors do not check their banks carefully for stability anymore, because of the Federal deposit insurance program. This illustrates the problem of:

A. Adverse selection
B. Externalities
C. Moral hazard
D. Public goods

C. Moral hazard

Economics

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What is a welfare state?

What will be an ideal response?

Economics

The law of diminishing marginal utility implies that the marginal utility of my fifth waffle is less than the marginal utility of my friend's second waffle, other things constant

a. True b. False

Economics