State provision of free healthcare may encourage individuals to ...

[michelleunicorn]

State provision of free healthcare may encourage individuals to engage in unhealthy behavior, such as excessive smoking or consumption of alcohol. This is an example of ________.
 
  A) moral hazard
  B) a positive externality
  C) adverse selection
  D) anchoring

Question 2

Suppose the nominal interest rate is 5 and the real interest rate is 2. We can deduce that the rate of inflation is
 
  A) 7.
  B) 3.
  C) 2.
  D) 0.

[micaelaswann]

Answer to Question 1

A

Answer to Question 2

B

[michelleunicorn]

Excellent

[connor417]

Thanks for the timely response, appreciate it