Christine works as a receptionist in an office. She is not supposed to use the Wi-Fi connection provided by the company to access social-networking Web sites
However, she often uses the Wi-Fi to access these Web sites because her browsing activities are not monitored by her employer. This is an example of ________. A) adverse selection
B) moral hazard
C) a positive externality
D) a free-rider problem
B
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During a recession the:
a. actual budget deficit is smaller than the structural budget deficit. b. cyclical budget deficit is larger than the structural budget deficit. c. actual budget deficit is larger than the structural budget deficit. d. structural budget deficit is larger than the cyclical budget deficit. e. none of the above.
The demand for labor is given by L(w) = 1000 - .5w, where w is the minimum wage. Find the level of w that maximizes the total wage payment, wL(w). What is the wage-elasticity of labor demand at the maximizing minimum wage?
What will be an ideal response?