In a television advertisement for AFLAC supplemental health insurance, an ice skater says to his skating partner, "Do you want to try a triple jump?" She responds, "Why not, I have AFLAC." This response illustrates the:
A. principal-agent problem.
B. adverse selection problem.
C. moral hazard problem.
D. free-rider problem.
Answer: C
Economics
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Indicate whether the statement is true or false
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