People with auto insurance tend to drive less carefully. Economists use this as an example of:
A) adverse selection.
B) moral hazard.
C) asymmetric selection.
D) information optimization.
Correct Answer:
Verified
Q73: If the cost of acquiring more information
Q74: Which of the following is one way
Q75: Auto insurance companies charge higher insurance premiums
Q76: Moral hazard can be avoided by:
A)employers monitoring
Q77: Moral hazard:
A)is a normative judgement about the
Q79: People sometimes make purchases without complete information
Q80: Moral hazard _ when adverse selection is
Q81: An employer asking potential employees to sit
Q82: A high school student voluntarily including a
Q83: Taking action to reveal one's own private
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents