When people who buy insurance change their behavior after the purchase because they are protected from loss by the insurance, the insurance market is said to face the problem of
A) moral hazard.
B) adverse selection.
C) asymmetric information.
D) economic irrationality.
Answer: A
Economics
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In a prisoner's dilemma:
a. all competing parties gain. b. one competitor gains at the expense of another. c. all competing parties lose. d. one competitor loses.
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After the financial crisis in the 1990s many economists criticized the IMF and the World Bank. Some suggestions for reform are to
A) eliminate both the institutions. B) increase private-sector lending by governments providing tax breaks to lenders. C) create a board of directors made up of finance ministers for the IMF. D) all of the above
Economics