If a fire insurance company requires firms buying fire insurance to install automatic sprinkler systems, the insurance company is trying to reduce
A) the problem of adverse selection. B) asymmetric information.
C) the moral hazard problem. D) sunk costs.
C
Economics
You might also like to view...
Which antitrust law is sometimes called the "Chain Store Act"?
A) Sherman Act B) Clayton Act C) Robinson-Patman Act D) Federal Trade Act
Economics
During recessions, automatic stabilizers tend to make the government's budget
a. move toward deficit. b. move toward surplus. c. move toward balance. d. not necessarily move the budget in any particular direction.
Economics