_____ is a situation where there is an increased tendency to take risks because others will pay some of the potential costs associated with taking such risks.
A) Screening
B) Signaling
C) Moral hazard
D) Asymmetric information
Correct Answer:
Verified
Q33: With perfect information, insurance companies will sell
Q34: With imperfect information, insurance companies will sell
Q35: For the insurance company, _ results in
Q36: For the insurance company, asymmetric information results
Q37: For the insurance company, _ results in
Q39: Moral hazard is a situation where:
A) one
Q40: Moral hazard tends to change _, not
Q41: Moral hazard tends to change:
A) behavior, not
Q42: Benedict failed to renew his driver's license
Q43: Violet has automobile insurance with full coverage
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