The Denver Broncos is a football team in the NFL, the Colorado Crush was an arena football team, and the Highlands Ranch Falcons is a local High School team.
Broncos tickets cost about 415, Crush tickets cost between 30 and 85 and Falcons tickets are 6. What does marginal utility theory predict about the marginal utility per dollar from each of these football games? A) The marginal utility per dollar will be greatest for the Broncos.
B) The marginal utility per dollar will be equal for all games.
C) The marginal utility per dollar will be greatest for the Crush.
D) The marginal utility per dollar will be greatest for the Falcons.
Question 2
Because Don has health insurance, he is more likely to see the doctor when he has a cold. This is an example of
A) adverse selection.
B) moral hazard.
C) both moral hazard and adverse selection.
D) private information.
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