​An Example of Moral Hazard Is

question 20

Multiple Choice

​An example of moral hazard is

• A)​A taxi driver paid per mile taking the shortest route
• B)a piece-rate garment worker shirking more than a per hour worker
• C)an hourly salesman working less hard than a commission salesman
• D)​an author on contract going to as many book signings as one with a percentage royalty rate 

Recognize the ethical considerations and economic implications of a market for human organs.

Interpret the role of government interventions, such as taxes and subsidies, on supply and market equilibriums.

Distinguish between allocative and productive efficiency in market contexts.

Understand the rationing function of prices and the role of government in competitive markets.

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Definitions:

Casework

The assistance provided by members of legislative bodies to constituents dealing with governmental agencies and systems, often involving personal problems or requests.

Federal Government

The national government of a federal country, where powers are divided between the central authority and constituent units or states.

Congress

The national legislative body of the United States, consisting of two chambers: the Senate and the House of Representatives.

Cloture

A procedural action in the Senate for ending a filibuster or debate, requiring a supermajority vote to proceed to a final vote.