Author Question: The government of Genovia introduced an unemployment insurance that ensures full payment of former ... (Read 23 times)

SAVANNAHHOOPER23 · **on:** Jun 29, 2018

The government of Genovia introduced an unemployment insurance that ensures full payment of former wages to unemployed workers.

A study conducted a few months after the introduction of this policy showed that several unemployed workers in Genovia were not actively searching for work. Such behavior is an example of ________. A) adverse selection
B) moral hazard
C) the prisoners' dilemma
D) the free-rider problem

Question 2

Refer to the scenario above. In this game, the dominant strategy equilibrium occurs if ________.

A) Firm A chooses Strategy Y, and Firm B chooses Strategy X
B) Firm B chooses Strategy Y, and Firm B chooses Strategy X
C) Both Firm A and Firm B choose Strategy X
D) Both Firm A and Firm B choose Strategy Y