Author Question: If, after she buys a car with air bags, Maria Andretti starts to drive recklessly, that would be an ... (Read 99 times)

schs14 · **on:** Jun 30, 2018

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