The Department of Education noticed that for loans granted to students without any strings,the average grade point average of the students decreases dramatically over time.Which one of the following can it use as a solution?
A) Renew the loans only if the students pass their courses
B) Renew the loans regardless of students' passing
C) Never renew the loans
D) Shut down the Department of Education
Correct Answer:
Verified
Q33: Moral hazard is caused by
A)Hidden actions
B)Hidden information
C)Both
Q34: Which is NOT an example of moral
Q35: Safe drivers buying "accident forgiveness" insurance tend
Q36: Which of the following problems are created
Q37: Moral hazard would lead to
A)Only risky drivers
Q39: A firm deciding to hire a secretary,bases
Q40: Lindsey's auto-insurance company issued her a policy
Q41: _is the problem of preventing you from
Q42: _is the problem of separating good from
Q43: A shoe salesman working on commission must
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