Which one of the following policies mitigates the negative effects of moral hazard?

A. Increasing everyone's insurance premium
B. Mandatory car insurance for car owners
C. Lowering everyone's insurance premium
D. Insurance policies with large deductibles


Answer: D

Economics

You might also like to view...

Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.

A. D; C B. D; B C. A; B D. B; C

Economics

Higher unemployment tends to be associated with

A) the classical model. B) higher real GDP. C) higher nominal GDP. D) lower real GDP.

Economics

The demand for Exxon gasoline is ____ the demand for all gasoline

a. exactly as elastic as, and of a different slope from b. more elastic than c. less elastic than d. exactly as elastic and of a different slope from

Economics

Interdependence among individuals and interdependence among nations are both based on the gains from trade

a. True b. False Indicate whether the statement is true or false

Economics