Which of the following would be an example of a moral hazard problem?
A) a person in poor health who purchases life insurance
B) a person who is taxed on the purchase of a carton of cigarettes
C) a person who purchases auto insurance and then drives more recklessly
D) a person who receives a subsidy from the Federal government to insulate a home
Correct Answer:
Verified
Q164: The franchising of fast-food restaurants would be
Q165: If a person drives with less care
Q166: Q167: The Coase theorem suggests that the government Q168: If Congress decreases the amount of government Q170: In dealing with market failures, the government Q171: Which of the following would be considered Q172: Production subsidies are a way of internalizing Q173: In a well-functioning cap-and-trade system for pollution Q174: When sellers are unable to distinguish "good"
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents