The slope of an individual's consumption-leisure budget constraint is:
a. 24 hours minus the number of leisure hours.
b. total consumption divided by the wage rate.
c. the real wage rate.
d. the negative of the real wage rate.
Question 2
US law was recently changed so that some airplane manufacturers are immune from liability from accidents involving their decades old aircraft. As a result
a. accident rates fell due to less adverse selection
b. accident rates fell due to less moral hazard
c. accident rates rose due to less adverse selection
d. accident rates rose due to less moral hazard
A nearly motionless individual, alert to danger, will whistle when alarmed to warn other groundhogs
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