The difference between moral hazard and adverse selection is
a. moral hazard has to do with unobservable characteristics of individuals
b. moral hazard has to do with unobservable actions of individuals
c. adverse selection is when individuals change their behaviors because of a contract
d. adverse selection is when you choose the wrong answer on a test
b
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At a trough in the business cycle, the macroeconomic equilibrium is ________ the level of potential real GDP
A) equal to B) rising above C) greater than D) less than E) None of the above answers is always correct because the relationship depends on whether the previous phase of the business cycle had been a recession or an expansion. The table gives the aggregate demand and aggregate supply schedules for a nation.
A . Explain why government payments to farmers are larger under a target price system than under the parity price system. b. Explain how the government can qualify a target price program to moderate the size of its deficiency payments