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Author Question: After trading in her Volkswagen Beetle for a much safer Mercedes sedan, Rene began driving less ... (Read 44 times)

james9437

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on: Jun 30, 2018
After trading in her Volkswagen Beetle for a much safer Mercedes sedan, Rene began driving less carefully. This is an example of:
 a. adverse selection.
 b. free-riding.
 c. moral hazard.
 d. Positive externalities.

Question 2

One difference between a tariff and a quota is that the tariff brings in revenue to the government while the quota benefits the foreign producer who is lucky enough to receive an import license.
 a. True
  b. False
  Indicate whether the statement is true or false


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carojassy25

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

True


james9437

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Reply #2 on: Jun 30, 2018
Thank you


carojassy25

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Reply #3 on: Jun 30, 2018
No problemo


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