Suppose a firm in each of the two markets listed below were to increase its price by 25 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not?

An example of moral hazard is

a. workers shirking when the boss is not looking b. health care insured workers dieting and exercising c. drivers of safer cars turning their phones off before driving d. borrowers investing their loan proceeds exactly as the bank requires

Which of the following statements about the long-term labor supply is FALSE?

A. Technology changes, such as the introduction of air conditioning in the mid-20th century, can have an impact on regional labor supply. B. The growth rate of the working-age population has been declining since 1980. C. Immigration provides an insignificant proportion of the overall growth of the workforce. D. Programs funded by payroll taxes, such as Social Security and Medicare, face problems from a slowdown in the growth of the working-age population.