12. Why do individuals act in riskier ways after being insured? A. Due to the problem of adverse selection B. Due to the problem of false confidence C. Due to the problem of moral hazard D. Due to the problem of screening costs

12. Why do individuals act in riskier ways after being insured? A. Due to the problem of adverse selection B. Due to the problem of false confidence C. Due to the problem of moral hazard D. Due to the problem of screening costs

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 4CQQ

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Question

12. Why do individuals act in riskier ways
after being insured?
A. Due to the problem of adverse selection
B. Due to the problem of false confidence
C. Due to the problem of moral hazard
D. Due to the problem of screening costs

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