If, after she buys a car with air bags, Maria Andretti starts to ...

[schs14]

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

[cpetit11]

Answer to Question 1

a

Answer to Question 2

True

[schs14]

Gracias!

[tandmlomax84]

Thanks for the timely response, appreciate it