An example of moral hazard is
a. workers working diligently even though the boss is not looking
b. health care insured workers dieting and exercising
c. drivers of safer cars texting on their phones while driving
d. borrowers investing their loan proceeds exactly as the bank requires
c
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Let's assume Ben can produce 3 units of a material good (M) or 3 units of a spiritual good (S) in a day, while Cal can produce 1 M or 2 Ss in a day. Both Ben and Cal can potentially produce a larger combination of M and S
A) if Ben specializes in S and Cal in M and they exchange with one another. B) if Ben specializes in M and Cal in S and they exchange with one another. C) if Ben specializes in both goods and doesn't exchange with Cal. D) only if Cal finds a way to also produce 3 M and 3 S per day.
Refer to the table. The exchange rate in this market is:
Answer the question on the basis of the following table, which indicates the dollar price of luta, the currency used in the hypothetical economy of Luteland:
A. 8 luta for one dollar.
B. 0.60 luta for one dollar.
C. 6 luta for one dollar.
D. 0.125 luta for one dollar.