Which of the following is an example of moral hazard?

A. A college student drinking alcohol and partying instead of studying.
B. A homeowner with fire insurance not clearing bush around their property.
C. A chronically sick person using hospital services.
D. A chronically sick person buying more health insurance than average.

Answer: B

Economics

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If a country experiences economies of scale in the production of a good, it implies that ______________

Fill in the blank(s) with the appropriate word(s).

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The figure above shows the labor market in a region. If a minimum wage of $8 an hour is imposed, then there are ________ unemployed workers

A) 20,000 B) 40,000 C) 60,000 D) 80,000 E) zero

Economics