If the moral hazard problem in automobile driving were to be ...

[dollx]

If the moral hazard problem in automobile driving were to be eliminated, the marginal cost of driving would be
 
  A) lowered enough to pull the amount of driving back down to the efficient level.
  B) lowered enough to raise the amount of driving back up to the efficient level.
  C) raised enough to pull the amount of driving back down to the efficient level.
  D) raised enough to raise the amount of driving back up to the efficient level.
  E) lowered back down to the efficient level, relieving the stress on market forces.

Question 2

A Credible Threat
 
  A) is also called a tit-for-tat strategy.
  B) always set a low price.
  C) minimizes the return of your opponent.
  D) is a strategy selection that is in your best interest.
  E) provides the best return for both players.

[bigsis44]

Answer to Question 1

C

Answer to Question 2

D

[dollx]

Excellent

[meganmoser117]

Gracias!