Joseph decides to join the Big State University's football team when he learns that his health insurance will pay for any subsequent injury. This illustrates

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Joseph's decision to join the football team is based on the assumption that he will not bear the full cost of any subsequent injury that he may incur. This is a classic example of a moral hazard problem, where one party takes excessive risks because they know that they will not bear the full consequences of their actions. In this case, Joseph's decision is influenced by the fact that his health insurance will pay for any injury he incurs while playing football.

Joseph Decides to Join the Big State University's Football Team