Author Question: In the market for automobile insurance, moral hazard implies that A) those who are insured might ... (Read 58 times)

azncindy619 · **on:** Jun 29, 2018

In the market for automobile insurance, moral hazard implies that

A) those who are insured might take greater risks.
B) those who are uninsured might take greater risks.
C) insured and uninsured alike will take greater risks.
D) drivers with greater risks are more likely to buy insurance.

Question 2

The above figure shows the market for labor. The employer is a monopsony. If a minimum wage of 10 is imposed, the equilibrium level of employment is

A) 200 hours per day.
B) 400 hours per day.
C) 600 hours per day.
D) 800 hours per day.