Which of the following is an example of moral hazard?
a. There are likely more cars of low quality than of high quality offered for sale without warranties in the used car market.
b. An individual who eats well and exercises regularly chooses not to purchase health insurance
c. An individual drives less cautiously after obtaining automobile insurance.
d. A car salesman offers a full warranty on a used car for 90 days.
c
Economics
You might also like to view...
A change in the price of a product will change the supply of that product
Indicate whether the statement is true or false
Economics
Which of the following is true?
A) The real interest rate can never be zero. B) The nominal interest rate is usually negative. C) The real interest rate is always positive. D) The nominal interest rate is usually less than the real interest rate. E) The real interest rate can be negative.
Economics