per year 26,000- 20,00- 10,c0- G= 9000- 5,00- Hours of elsure 1,2001,200 1.800 2.000 per year If the guaranteed income program did not induce moral hazard for the wage earner at X, where would she have moved? In the example why is the possible moral hazard costly for the program? In what macroeconomic sense is the possible moral hazard costly?

per year 26,000- 20,00- 10,c0- G= 9000- 5,00- Hours of elsure 1,2001,200 1.800 2.000 per year If the guaranteed income program did not induce moral hazard for the wage earner at X, where would she have moved? In the example why is the possible moral hazard costly for the program? In what macroeconomic sense is the possible moral hazard costly?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 10P

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