If a person drives with less care after purchasing auto insurance, this situation would be an example of a(n):

A. Reverse wealth problem
B. Negative externality problem
C. Adverse selection problem
D. Moral hazard problem

D. Moral hazard problem

Economics

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If a monopolist's marginal revenue is less than zero over a range of output, then price elasticity of demand must be: a. greater than one. b. equal to one

c. less than one. d. equal to zero.

Economics

A positive externality is present whenever: a. the social marginal benefit of an activity exceeds the private marginal benefit. b. the private marginal benefit of an activity exceeds the private marginal cost. c. the social marginal cost of an activity exceeds the private marginal cost

d. none of the above.

Economics