Which of the following describes moral hazard?
A) Following the signing of a contract there is an increased likelihood that one party will engage in problematic behaviour.
B) High risk individuals are less attracted to certain types of contract.
C) High risk individuals are more attracted to certain types of contract.
D) Prior to the signing of a contract there is an increased likelihood that one party will engage in problematic behaviour.
Correct Answer:
Verified
Q17: Insurance companies can lower their risks by
A)
Q18: Individuals take out insurance because they are
A)
Q19: In which of the following cases is
Q20: The law of large numbers is defined
Q21: Which of the following is an example
Q23: Moral hazard create costs for insurance companies
Q24: Insurance companies can reduce the moral hazard
Q25: An indifference curve is
A) the
Q26: Assume Diana buys sweatshirts and T- shirts.
Q27: An indifference curve is convex to the
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