BUSA-615 -Managerial Economics -Module 6 Test
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Terms in this set (45)
An example of moral hazard is A taxi driver paid per mile taking a longer route
than necessary
Moral hazard would lead to Drivers taking on a lot more risk after buying
insurance
Moral hazard is caused by Hidden actions
Which is NOT an example of moral Drivers of heavier, safer cares are less likely to run
hazard stop signs
A shoe salesman working on No, because it costs him more in effort
commission must decide whether to
work hard or shirk. Working hard
would increase the probability of a
sale from 20% to 70% but the effort
would cost him $5. If the typical
commission on a pair of shoes was
$8, would he decide to work hard?
Economists disagree with constant Moral hazard
government bailouts of large,
struggling companies because it can
give a rise to
, A firm that screens candidates to Moral hazard
determine how well they would work
with limited supervision is afraid of
facing
The following is NOT an example of requiring physicians to be 'board certified'
a potential monitoring solution to
moral hazard
Many spouses complain that their Moral hazard
partners put less effort into their
relationship after getting married. This
is an example of
An example of moral hazard is a piece-rate garment worker shirking less than a
per hour worker
Adverse selection is caused by Hidden information
One difference between moral Adverse selection has to do with unobservable
hazard and adverse selection is actions of individuals
Surgical weight loss procedures are Both B&C
cheaper and safer than ever. As a
consequence, we could expect:
An example of moral hazard is workers shirking when the boss is not looking
Many spouses complain that their Moral hazard
partners tend to "let themselves go"
after getting married. This is an
example of
Save
Terms in this set (45)
An example of moral hazard is A taxi driver paid per mile taking a longer route
than necessary
Moral hazard would lead to Drivers taking on a lot more risk after buying
insurance
Moral hazard is caused by Hidden actions
Which is NOT an example of moral Drivers of heavier, safer cares are less likely to run
hazard stop signs
A shoe salesman working on No, because it costs him more in effort
commission must decide whether to
work hard or shirk. Working hard
would increase the probability of a
sale from 20% to 70% but the effort
would cost him $5. If the typical
commission on a pair of shoes was
$8, would he decide to work hard?
Economists disagree with constant Moral hazard
government bailouts of large,
struggling companies because it can
give a rise to
, A firm that screens candidates to Moral hazard
determine how well they would work
with limited supervision is afraid of
facing
The following is NOT an example of requiring physicians to be 'board certified'
a potential monitoring solution to
moral hazard
Many spouses complain that their Moral hazard
partners put less effort into their
relationship after getting married. This
is an example of
An example of moral hazard is a piece-rate garment worker shirking less than a
per hour worker
Adverse selection is caused by Hidden information
One difference between moral Adverse selection has to do with unobservable
hazard and adverse selection is actions of individuals
Surgical weight loss procedures are Both B&C
cheaper and safer than ever. As a
consequence, we could expect:
An example of moral hazard is workers shirking when the boss is not looking
Many spouses complain that their Moral hazard
partners tend to "let themselves go"
after getting married. This is an
example of
