Moral Hazard
What will be an ideal response?
When one person takes more risks because someone else bears the burden of those risks.
Economics
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. Using the above figure, how much producer surplus is lost from this tax on sports equipment?
A) abd B) acd C) P0P1ba D) P0P1da
Economics
Under perfect competition, entry of new firms into the market in the long run tends to:
a. raise the aggregate supply. b. raise the level of profit of the existing firms. c. raise the aggregate demand for goods. d. reduce the degree of competitiveness in the market. e. reduce the market power of the existing firms.
Economics