Author Question: State provision of free healthcare may encourage individuals to engage in unhealthy behavior, such ... (Read 36 times)

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

State provision of free healthcare may encourage individuals to engage in unhealthy behavior, such as excessive smoking or consumption of alcohol. This is an example of ________.

A) moral hazard
B) a positive externality
C) adverse selection
D) anchoring

Question 2

Suppose the nominal interest rate is 5 and the real interest rate is 2. We can deduce that the rate of inflation is

A) 7.
B) 3.
C) 2.
D) 0.