ew History Bookmarks People Window Help . ECO202. Pills & Automobiles (Officia ×

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ew History Bookmarks People Window Help . ECO202. Pills & Automobiles (Officia × /mdc.blackboard.com/webapps/assessment/take/launch.jsp?course assessment id- 325998.1&cours; QUESTION 6 After Luis received health insurance from his job as an accountant, he decided to become a skydiver or health insurance from his employer would cover most of his medical costs if he were injured. Which of t a. The principal-agent problem became more severe O b. The moral hazard problem decreased in intensity. O c·The moral hazard problem increased in intensity. d. The adverse selection problem became more severe. e. The principal-agent problem became less severe. QUESTION 7 Government programs that subsidize housing or Internet access are an example of a. disposable income. b. underground economies. c. in-cash transfers. O d. income supplements. e. in-kind transfers. QUESTION 8 Mitchell has a cause: He loves cats. As an economist, he could earn $100,000 as a faculity member, but in the Humane Society as its chief economist. Knowing nothing else, you would expect that he would receive a. higher pay at the Humane Society because of the difference in skill levels. 0 b. lower pay at the Humane Society because of signal theory. O c. lower pay at the Humane Society because of the compensating differential theory. O d. the same pay as either a professor or as a chief economist at the Humane Society. Oe. higher pay at the Humane Society bedsuse of signal theory QUESTION 9 Click Save and Submit to save and submit. Click Save All Answers to save all answers

Explanation / Answer

6. c, moral hazard problem increased in intensity.

Because Louis is fully insured by his employer he will take more risks and would avoid precautions as he knew he is insured .

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