The difference between moral hazard and adverse selection is   a. ​moral hazard has to do with unobservable characteristics of individuals     b. ​moral hazard has to do with unobservable actions of individuals     c. ​adverse selection is when individuals change their behaviors because of a contract     d. ​adverse selection is when you choose the wrong answer on a test

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter17: Income, Poverty, And Health Care
Section: Chapter Questions
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​The difference between moral hazard and adverse selection is

  a.

​moral hazard has to do with unobservable characteristics of individuals

 
  b.

​moral hazard has to do with unobservable actions of individuals

 
  c.

​adverse selection is when individuals change their behaviors because of a contract

 
  d.

​adverse selection is when you choose the wrong answer on a test

 

 

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