An employee in a department store often steals goods when other employees are not around. Because the store does not have a surveillance camera, the store manager is unable to monitor his activities. This behavior is an example of ________
A) adverse selection
B) moral hazard
C) internalization of externalities
D) the paradox of thrift
B
Economics
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Entry by competitive firms decreases the market price, while exit by competitive firms increases the market price. Explain why firms enter or exit an industry and why these price changes occur
What will be an ideal response?
Economics
Many people sell goods through eBay at prices that are higher than the prices they paid for these goods. Economists consider these transactions as
A) examples of exploitation of buyers of the goods by the sellers. B) examples of arbitrage. C) unproductive since the goods sold have been produced in the past. D) examples of zero-sum games, since the value of the goods sold is exactly equal to the prices paid for them.
Economics