Moral hazard occurs when an informed party benefits in an exchange by taking advantage of knowing more than the other party
a. True
b. False
Indicate whether the statement is true or false
False
Economics
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A soda factory employs seven workers and produces 500 bottles of soda a day. The company reduces the workforce to six workers and output is now 450 bottles a day. The seventh worker:
A. had a marginal product of 50 bottles of soda. B. caused average product to fall. C. had a lower marginal product than the sixth worker. D. All of these are true.
Economics
Suppose saving is $1,400 when income is $10,000 and the MPC equals 0.8. When income increases to $12,000, saving is
A. $1,680. B. $1,800. C. $2,200. D. $3,000.
Economics