Which of the following best describes a situation of moral hazard?
A) Sicker people are more likely to buy health insurance.
B) Prospective used-car buyers have less information about a particular car than its seller does.
C) Drivers with collision insurance drive more recklessly.
D) Drivers with collision insurance wear seatbelts less often.
Correct Answer:
Verified
Q162: The prices of most services have risen
Q164: Anthony Downs, in The Economic Theory of
Q165: Market economies produce outcomes that
A)are virtually ideal
Q165: When consumers or businessmen stop collecting information
Q167: Unemployment insurance is often criticized because workers
Q168: Moral hazard
A)makes a free market in insurance
Q170: Moral hazard is best described as
A)an action
Q170: Rent seeking is the term given
A)to an
Q172: The cost disease of the service sector
Q173: The owner of a garage makes large
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