Suppose Dave drives more recklessly when he has car insurance than when he does not have car insurance. This is an example of the moral hazard problem associated with insurance

What does the saying "There is no such thing as a free lunch" mean?

a. free lunches were outlawed in 1920 b. You will receive a bill for the "free" lunch at a later date c. free lunches often cause food poisoning d. everything costs something

A relatively steep money demand schedule reflects the assumption that the interest elasticity of money demand is

a. low (in absolute value). b. high (in absolute value). c. zero. d. indefinite.