What is the moral hazard problem associated with health care insurance?
What will be an ideal response?
Health care insurance creates a moral hazard problem by encouraging some people to be less careful about their health. It also gives some people greater incentives to over consume health care than would be the case without insurance.
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When Toyota introduced the new Prius in the United States, which of the following occurred?
A The hybrid car was not as successful as expected. B The costs of manufacturing were too high and Toyota had to stop production. D All of the above C Toyota confronted the risk of making large investments and the uncertainly over future oil prices.
Given the information in the above table, the relationship between x and y is
A) positive, and the curve becomes flatter as x increases. B) positive, and the curve becomes steeper as x increases. C) positive and linear. D) negative and linear.