Q51 Suppose an advertising firm purchases additional insurance against theft and, as a result, the partners are not very careful about locking their office doors when they leave. This is... a. Adverse selection. b. A public good. c. A common property resource. d. The free-rider problem. e. Moral hazard.

Q51 Suppose an advertising firm purchases additional insurance against theft and, as a result, the partners are not very careful about locking their office doors when they leave. This is... a. Adverse selection. b. A public good. c. A common property resource. d. The free-rider problem. e. Moral hazard.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 10P

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