Moral hazard occurs when:
a. Individuals and institutions do not bear the full cost of their own mistakes.
b. General social decay leads to unethical business decisions.
c. The actions of one (or a few) result cause harm to others, when the same would not occur if the actions were by many.
d. General social decay leads to unethical business decisions.
e. All of the above are examples of moral hazard.
.A
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When a consumer is maximizing total utility,
A) the average utility from each dollar spent is the same. B) total utility cannot be increased by reallocating expenditures among various products. C) the total utility obtainable from each product is at a maximum. D) the marginal utility of the last unit of each product purchased is zero.
Real GDP in 2015 is $10 trillion. Between 2015 and 2016, using 2015 prices, GDP grew 3 percent and using 2016 prices real GDP grew 7 percent. Using the chain-weighted output index method, real GDP in 2016 is ________ trillion
A) $10.5 B) $11 C) $10.1 D) $12.72