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Author Question: More people started building houses in earthquake-prone regions when the government of Polonia ... (Read 100 times)

mcmcdaniel

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More people started building houses in earthquake-prone regions when the government of Polonia launched an insurance program for houses in this region. This is an example of ________.
 
  A) adverse selection
  B) a positive externality
  C) moral hazard
  D) herd behavior

Question 2

List the various arguments against free trade.
 
  What will be an ideal response?



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Hikerman221

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Answer to Question 1

C

Answer to Question 2

The various arguments against free trade are:
a) National security concerns
b) Fear of effects of globalization on a nation's culture.
c) Environmental and resource concerns
d) Infant industry concerns
e) Potential negative effect on local wages and jobs





 

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