After trading in her Volkswagen Beetle for a much safer Mercedes ...

[james9437]

After trading in her Volkswagen Beetle for a much safer Mercedes sedan, Rene began driving less carefully. This is an example of:
 a. adverse selection.
 b. free-riding.
 c. moral hazard.
 d. Positive externalities.

Question 2

One difference between a tariff and a quota is that the tariff brings in revenue to the government while the quota benefits the foreign producer who is lucky enough to receive an import license.
 a. True
  b. False
  Indicate whether the statement is true or false

[carojassy25]

Answer to Question 1

c

Answer to Question 2

True

[james9437]

Thank you

[carojassy25]

No problemo