Which of the following best describes a situation of moral hazard?
a. Sicker people are more likely to buy health insurance.
b. Prospective used-car buyers have less information about a particular car than its seller does.
c. Drivers with collision insurance drive more recklessly.
d. Drivers with collision insurance wear seatbelts less often.
c
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The __________ is always larger than the __________
A) yield on a discount basis; coupon equivalent yield B) yield on a discount basis; bond equivalent yield C) coupon equivalent yield; yield on a discount basis D) None of the above.
Given the information and assuming trade occurs between the three states, we can expect:
A. that there is no means by which Michigan can obtain lettuce while specializing in the
production of autos.
B. that money will not be needed to accomplish the desired exchanges.
C. money to flow counterclockwise from Michigan to Texas to Washington.
D. money to flow clockwise from Michigan to Washington to Texas.