Which of the following is not an example of moral hazard?
a. People with health insurance take poor care of themselves.
b. Reckless drivers own the safest cars.
c. Banks make risky loans because deposit insurance protects them.
d. People give more to charity just because it is tax deductible.
e. A quarterback holds on to the ball longer before passing because he has a good offensive line.
D
You might also like to view...
In a diagram showing the average total cost and average variable cost curves, the minimum point of the average total cost is
A) at the same level of output as the maximum of the total product curve. B) at a lower level of output than the minimum point of the average variable cost. C) at a larger level of output than the minimum point of the average variable cost. D) at the same level of output as the minimum point of the average variable cost.
The OPEC production cuts of 1999-2000 increased energy prices and caused the aggregate supply curve to
a. shift outward. b. shift inward. c. become flatter. d. become steeper.