Which of the following is an example of moral hazard?

a. When a family's belongings are protected against theft and they take special care to look after the house.
b. An individual buys a new auto insurance policy which includes a special payment if the car skids on the ice and the person then begins driving recklessly on ice.
c. When a country expects assistance in the event of a currency crisis and therefore takes special care to avoid such a crisis.
d. When decision-makers expect special assistance in the event of an unfavorable outcome and their behavior changes in such a way to avoid that outcome entirely.
e. When a person with health insurance takes great care not to catch a serious cold.


B

Economics

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The effect of monetary policy on real output is ________ due to deregulation's effect on the LM curve alone, and ________ due to deregulation's effect on the IS curve alone

A) strengthened, strengthened B) strengthened, weakened C) weakened, strengthened D) weakened, weakened

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Ceteris paribus, with a fixed exchange rate, if Americans decide to buy more Japanese-made television sets, this causes a market ________ of Japanese currency and creates a balance-of-payments ________ for the United States.

A. shortage; surplus B. surplus; surplus C. surplus; deficit D. shortage; deficit

Economics

Write down the national savings and investment identity.

What will be an ideal response?

Economics

This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, the firm's marginal costs:

A. decrease until the 2nd unit, then increase. B. increase as output increases. C. increase until the 4th unit, then decrease. D. are constant.

Economics