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Author Question: There is an influenza epidemic at Sally's office. If she got the flu shot this winter, Sally would ... (Read 272 times)

JGIBBSON

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on: Jul 1, 2018
There is an influenza epidemic at Sally's office. If she got the flu shot this winter, Sally would still go to the office instead of working from home even though it increases the likelihood of her catching the flu. This is an example of a
 a. Adverse selection
  b. Moral hazard
 c. Screening
 d. None of the above

Question 2

Managers undertake an investment only if
 a. Marginal benefits of the investment are greater than zero
  b. Marginal costs of the investment are less than marginal benefits of the investment
  c. Marginal benefits are greater than marginal costs
  d. Investment decisions do not depend on marginal analysis


Bison

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Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

c


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JGIBBSON

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Reply #2 on: Jul 1, 2018
Correct answers!


Bison

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Reply #3 on: Jul 1, 2018
Great! Please up vote :D


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