Co-insurance is an example of how a market failure due to moral hazard can be solved __________ government intervention.
A) with
B) partially by
C) without

Question

Quizplus · Accepted Answer

Co-insurance is a mechanism where both the insurer and the insured share the costs of an insured loss, reducing the moral hazard by making the insured partly responsible for the costs, thus solving the market failure without needing government intervention.

Co-Insurance Is an Example of How a Market Failure Due