James insured his car with a renowned insurance company that checked his driving skills and verified his accident records before insuring his car. After paying two premiums for this insurance, James took to drinking and driving. This action of James is likely to create:
a. an economic loss.
b. a positive externality.
c. an economic bad.
d. a moral hazard.
e. diseconomies of scale.
d
Economics
You might also like to view...
When people make decisions about the quantity of education to undertake, they balance the marginal social benefit against the marginal private cost
Indicate whether the statement is true or false
Economics
Accounting profit is usually larger than economic profit.
Answer the following statement true (T) or false (F)
Economics