Bill gets medical insurance and then exercises less. Lilly has health concerns and so applies for medical insurance. Identify each of these as moral hazard or adverse selection
Bill's behavior illustrates moral hazard. Lilly's illustrates adverse selection.
Economics
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The simple graph that depicts intended investment as a horizontal straight line (investment measured on the vertical axis and national income measured on the horizontal axis) implies that intended investment is
a. income dependent b. equal to autonomous consumption c. autonomous d. induced e. equal to saving
Economics
Which type of unemployment is most likely to help the economy become more efficient?
a. cyclical b. structural c. seasonal d. frictional e. underemployment
Economics