1. Select the rule which determines the quantity of a rice which a consumer will demand. a) Continue to buy so long as there is no consumer surplus. b) Stop buying rice at the level of demand where the consumer surplus rises above the market price. c) Stop buying rice at the level of demand where the marginal utility falls to the price of rice. d) Continue to buy so long as demand for rice is price elastic.
1. Select the rule which determines the quantity of a rice which a consumer will demand.
a) Continue to buy so long as there is no
b) Stop buying rice at the level of demand where the consumer surplus rises above the market price.
c) Stop buying rice at the level of demand where the
d) Continue to buy so long as demand for rice is price elastic.
2. In which of these situations might moral hazard arise?
a) Insurance companies fail to calculate the risks of accident correctly.
b) A company receives an exemption from pollution control legislation.
c) A sports team accepts bribes which affect their performance in a game.
d) A group of households makes a collective purchase of flood insurance
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