The tendency for the poorest risks to buy health insurance and the tendency of the insured to take more risks with their health are known as moral hazard and adverse selection, respectively.
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Q137: Copious Corp.is owned by 2 million stockholders
Q138: The principal-agent problem arises because of
A)natural selection
B)diminishing
Q139: With increased specialization in the economy, principal-agent
Q140: Which of the following is not a
Q141: By requiring that applicants for insurance policies
Q143: By requiring that policyholders pay a deductible
Q144: The adverse selection problem is most likely
Q145: Suppose Sally buys a Volvo because they
Q146: Adverse selection is more likely when
A)a job
Q147: An example of a moral hazard would
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