Homework Clinic
Social Science Clinic => Economics => Macroeconomics => Topic started by: schs14 on Jun 30, 2018
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If, after she buys a car with air bags, Maria Andretti starts to drive recklessly, that would be an illustration of:
a. the moral hazard problem.
b. the free rider problem.
c. the adverse selection problem.
d. the lemon problem.
Question 2
If Brazil can produce 5 shirts or 4 pounds of beef in a day, and Uruguay can produce 10 shirts or 2 pounds of beef in a day, then Brazil has a comparative advantage in the production of beef.
a. True
b. False
Indicate whether the statement is true or false
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Answer to Question 1
a
Answer to Question 2
True