Teri takes her new puppy to the veterinarian. after he examines the puppy, the vet tells teri that her puppy needs a series of shots. teri agrees to the shots since the veterinarian knows way more about animal health than she does. this is an example of

a. a public good.
b. moral hazard
c. the free-rider problem.
d. adverse selection.
e. asymmetric information.

Suzanna decided not to pay federal income tax, saying that paying federal income tax is optional. describe two possible consequences of suzanna’s decision

Why does the united states government provide tax breaks related to the amount of money companies spend on research and development? a. to provide incentives for companies to conduct research and development to allow antitrust authorities b. to challenge joint research efforts c. to protect the right of inventors d. to produce and sell their inventions e. to involve less government scrutiny than a government funded project

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? a) compensating managers with stock options, b) financing risky projects with additional debt, c) the threat of hostile takeovers, d) the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions, e) abolishing the security and exchange commission