l 8. If the price of apples decreases, the budget constraint for apples and oranges will a. shift outward, parallel to the original budget constraint. b. shift inward, parallel to the original budget constraint. c. rotate outward along the apple axis. d. rotate outward along the orange axis. 9. Which of the following practices would indicate that an employer is trying to overcome a moral-hazard problem with his employees? a. The employer has voluntarily removed video cameras from the factory floor. b. The employer pays his workers Wages that are unusually high for the industry and _ region. c. The employer pays his employees below- equilibrium wages since the employees are likely to shirk some of their responsibilities. d. The employer requires his employees to take a pre- -employment work effort test. 5. With a downward slopping demand curve and upward slopping supply curve, when a good is taxed a. both buyers and sellers of the good are worse off. b. only buyers are worse off, because they ultimately bear the burden of the tax. c. only sellers are worse off, because the government holds them responsible for sending in the tax payments. d. neither buyers nor sellers are worse off, since tax revenue is used to provide goods and services that would otherwise not be provided in a market economy. 6. If a profit-maximizing monopolist faces a downward-sloping market demand curve, its a. average revenue is less than the price of the product. b. average revenue is less than marginal revenue. c. marginal revenue is less than the price of the product. d. marginal revenue is greater than the price of the product