One way insurance firms reduce moral hazard costs is by doing which of the following?
a. charging the buyer lower payments regardless of whether the buyer engages in risky behavior
b. making buyers prove they will not engage in risky behavior before they may buy insurance
c. charging the buyer higher payments regardless of whether the buyer engages in risky behavior
d. making the buyer pays some of the costs in the form of deductibles and co-pays
d. making the buyer pays some of the costs in the form of deductibles and co-pays
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Distinguish the short run from the long run. Generally, what causes costs of production to vary with output in the short run? What generally causes costs of production to vary in the long run?
If you have $100 in an account that offers "2x" margin, you can effectively buy:
A. $200 worth of stocks. B. $1,000 worth of stocks. C. $100 worth of stocks. D. $2,000 worth of stocks.
Which of the following will have no impact on the demand for ice cream in the short run?
a. A change in population size b. A change in the price of ice cream c. A change in seasons d. A change in consumer preferences e. A change in consumer incomes
The amount of time that it takes to identify a national economic problem is
A. fiscal policy. B. the recognition time lag. C. the effect time lag. D. the action time lag.