Author Question: After people buy insurance, they are more likely to build a beach house out of wood framing rather ... (Read 51 times)

piesebel · **on:** Jun 30, 2018

After people buy insurance, they are more likely to build a beach house out of wood framing rather than concrete block. This is an example of
A) risk aversion.
B) moral hazard.
C) risk neutrality.
D) free riding in teams.

Question 2

At a higher wage rate:
a. the opportunity cost of working increases.
b. the opportunity cost of leisure increases.
c. the opportunity cost of working decreases.
d. the opportunity cost of leisure decreases.