Moral hazard is best described as
a. an action by an individual that endangers others.
b. an action that puts one's salvation at risk.
c. the presence of insurance increasing risk taking behavior.
d. vigilance by individuals to keep total insurance claims at a minimum to keep rates low.
c
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A game in which players want to coordinate on an outcome and in which both agree that coordinating on one particular outcome is preferred to coordinating on the other is called
A) an assurance game. B) a pure coordination game. C) a battle of the sexes game. D) a chicken game.
Recently, many developing countries throughout the world have begun to institute policies that seek to
A) liberalize international trade by lowering trade barriers. B) reduce dependence on international trade by raising trade barriers. C) reduce dependence on international trade by instituting laws that call for buying only domestically made goods. D) Two of the above.