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Moral Hazard Create Costs for Insurance Companies Because

Question 23

Multiple Choice

Moral hazard create costs for insurance companies because


A) insurance companies are unable to diversify across insurance markets when there is a moral hazard problem.
B) individuals are more likely to engage in risky behaviour once they have the comfort offered by an insurance policy.
C) adverse selection has become a bigger problem in recent years.
D) all of the above

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