Economic Analysis of Social Issues 1st Edition by Alan Grant

تمرين 17

Billy, who has a family history of cancer, is more likely to seek out insurance than Joe, whose parents and grandparents all lived to the ripe old age of 112. This is an example of the _______.
A) Moral hazard problem
B) Prisoner's dilemma problem
C) Third-party payment problem
D) Adverse selection problem