A person starting to drive more recklessly after signing a contract with an automobile insurance company is an example of
A) adverse selection.
B) moral hazard.
C) signaling.
D) screening.
B
Economics
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What does the slope of the curved line at point A shown in the above figure equal?
What will be an ideal response?
Economics
Based on the table above, if the wage rate is $500 and the price of output is $5, how many workers should the firm hire?
What will be an ideal response?
Economics
Buying electricity off the freewheeling grid at one quarter 'til the hour for delivery on the hour illustrates:
a. relational contracts with distributors b. vertical requirements contracts c. spot market transactions d. variable price agreements
Economics
In the circular flow, investment refers to spending on
a. government bonds. b. certificates of deposit. c. capital goods. d. consumer goods.
Economics