
Lojack anti-theft devices installed on some cars located the stolen cars and helped shut down chop shops, where thieves cut up stolen cars and resold the parts. This reduced car theft in general, creating a(n)
A) moral hazard.
B) positive externality.
C) adverse selection.
D) discrimination against cars most likely to be stolen.
E) logrolling.
Correct Answer:
Verified
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