Author Question: Robert got a new job and relocated to a different city. He initially decided to rent a small ... (Read 64 times)

madam-professor

  • Hero Member
  • *****
  • Posts: 584
Robert got a new job and relocated to a different city. He initially decided to rent a small apartment close to his office.
 
  However, he decided to live in a much bigger and costlier apartment when he found out that his employer will pay him a house rent allowance. This is an example of ________. A) adverse selection
  B) moral hazard
  C) the prisoners' dilemma
  D) the free-rider problem

Question 2

When the price of a good spikes dramatically, the information conveyed in the market demonstrates that
 
  A) greed has increased among the suppliers.
  B) greed has increased among the demanders.
  C) the good has become more scarce than before.
  D) the good has become less scarce than before.



af

  • Sr. Member
  • ****
  • Posts: 356
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

For a complete list of videos, visit our video library