A person who has auto insurance is likely to drive a little less safely and to take less care in parking their car in a safe place off the street. This is an example of a problem called:

A. externality.
B. signaling.
C. moral hazard.
D. adverse selection.

Answer: C

Economics

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In the United States, the most commonly cited measure of the price level is the consumer price index

Indicate whether the statement is true or false

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________ economists believe that active help from fiscal and monetary policy is needed to insure that the economy is operating at full employment

A) Keynesian B) Monetarist C) Classical D) All

Economics