A. moral hazard
B. risk aversion
C. adverse selection
D. a poor gamble
Related Mcqs:
- A life insurance company forces Enzo to have a medical examination prior to selling him insurance ?
A. transitivity
B. impossibility
C. independence
D. unanimity - A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
A. £35
B. £15
C. £30
D. £60 - Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?
A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
B. tradable pollution permits, Pigouvian taxes, command-and-control policies
C. tradable pollution permits command-and-control policies, Pigovian taxes.
D. command-and-control policies, tradable pollution permits, Pigovian taxes.
E. They would all rank equally high because the same result can be obtained from any one of the policies - The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?
A. approximately one-half
B. smaller than
C. larger than
D. approximately equal to - If interest rates rise then costs are likely to _______ and demand is likely to _________?
A. rise, fall
B. rise; rise
C. fall; fall
D. fall; rise - If VAT rates rise, then costs are likely to ___ and demand is likely to ____?
A. rise; rise
B. rise; fall
C. fall; fall
D. fall; rise - Which of the following government policies is least likely to increase likely to increase growth in Africa ?
A. increase expenditure on public education
B. eliminate civil war
C. All of these answers would increase growth
D. increase restrictions on the importing of American tractors and electronics - IF Unemployment insurance were so generous that it paid laid off workers 95 percent of their regular salary ?
A. Frictional Unemployment would fall
B. The official unemployment rate would probably understate true unemployment
C. The official unemployment rate would probably overstate true unemployment
D. There would be no impact on the official unemployment rate
E. None of these answers - The migrations of electricians from low-paying nations to high-paying nations is most likely to be challenged by ?
A. electrician unions in the high-paying nations
B. electrician unions in the low paying nations
C. electrician employers in the high-paying nations
D. electricians who stay in the low paying nations - If two firms doing the same thing in the same industry join together, this is known as a ?
A. vertical merger
B. horizontal merger
C. conglomerate merger
D. hostile takeover
