Exhibit 29-2 -According to the Data in Exhibit 29-2, the Relative Price

question 167

Multiple Choice

Exhibit 29-2
-According to the data in Exhibit 29-2, the relative price of computers and rice for Korea is

• A)1/2 computer per unit of rice.
• B)2 computers per unit of rice.
• C)3 computers per 2 units of rice.
• D)3/2 computers per unit of rice.
• E)2/3 computer per unit of rice.

---

Definitions:

Behavior

The actions or reactions of an entity, often in response to its environment.

Moral Hazard

The situation in which an individual or entity is more likely to take risks because the potential costs will not be borne by them but by another party.

Efficient Behavior

Efficient behavior refers to actions that maximize the desired outputs or results with the least amount of wasted effort or resources.

Insurance Industry

The sector of the economy that provides coverage against financial loss, including various types of insurance products and services.