A. Josephine doesn’t buy health insurance because it is too expensive, and she is healthy
B. A life insurance company forces Enzo to have a medical examination prior to selling him insurance
C. Enzo drives more recklessly after he buys car insurance
D. Fatima chooses to attend a well-respected college
Related Mcqs:
- Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?
A. They pay employees with delayed compensation such as a year-end bonus
B. They buy life insurance on their workers
C. They pay above equilibrium wages
D. They put hidden video cameras in the workplace - Which of the following is an example of moral hazard ?
A. After Gull buys fire insurance, he begins to smoke cigarettes in bed.
B. None of these answers demonstrate moral hazard
C. Mahmood has been feeling poorly lately so he seeks health insurance
D. All of these answers demonstrate moral hazard - Moral hazard means that the act of insuring ____ that the desired outcome will occur?
A. reduces the likelihood
B. increases the likelihood
C. guarantees
D. none of the above - Jamil’s friend dies of a sudden heart attack. Jamil rushes to his doctor for an expensive physical examination. This response demonstrates that ?
A. People give too much weight to a small number of vivid observations
B. People easily change their minds when confronted with new information
C. People enjoy going to the doctor
D. People tend to plan ahead and follow through on their plans - The prisoners Dilemma Game demonstrates that ?
A. players are better of to act independently
B. monopoly is better than competition
C. people will always cheat
D. players are better off if they co-operate - If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it ha ever done before) with new products as a means to stimulate growth the company would be following which of the following general strategies ?
A. market penetrations
B. market development
C. product development
D. diversification - Which of the following is an example of a signal that is used to reveal private information ?
A. Enzo carefully chooses a special gift for Josephine
B. Josephine earns her MBA from the Harvard Business School
C. Lexus advertises its cars during the football World Cup Final.
D. All of these answers are correct - hich of the following is not a property required of a perfect voting system ?
A. The median voter always wins
B. no dictators
C. independence of irrelevant
D. transitivity - Which of the following is true under pairwise majority rule if people vote for the outcome closest to their most preferred outcome ?
A. The average preferred outcome wins
B. There is no clear winner due to Arrow’s Impossibility Theorem.
C. The outcome preferred by the median voter wins
D. The outcome preferred by the greatest number of voters wins. - Which of the following is not true about how people make decisions ?
A. people give too much weight to a small number of vivid observations
B. People are sometimes too sure of their own abilities
C. All of these answers are actually true statements about how people make decisions.
D. People are always rational maximizers
E. People are reluctant to change their minds in the face of new information
