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-James Insured His Car with a Renowned Insurance Company That

Question 76

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-James insured his car with a renowned insurance company that checked his driving skills and verified his accident records before insuring his car. After paying two premiums for this insurance, James took to drinking and driving. This action of James is likely to create: A) an economic loss. B) a positive externality. C) an economic bad. D) a moral hazard. E) diseconomies of scale.
-James insured his car with a renowned insurance company that checked his driving skills and verified his accident records before insuring his car. After paying two premiums for this insurance, James took to drinking and driving. This action of James is likely to create:


A) an economic loss.
B) a positive externality.
C) an economic bad.
D) a moral hazard.
E) diseconomies of scale.

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