which of these situations do we see a problem of moral hazard a) A builder hires a new electrician without knowing how quickly she can work. b) A bank does not tell customers about the circumstances when it can levy charges on their account. c) A hotel company encourages independent reviews of its resorts to attract more tourists. d) A car driver repeatedly forgets to lock his car since he is insured against its theft.

which of these situations do we see a problem of moral hazard a) A builder hires a new electrician without knowing how quickly she can work. b) A bank does not tell customers about the circumstances when it can levy charges on their account. c) A hotel company encourages independent reviews of its resorts to attract more tourists. d) A car driver repeatedly forgets to lock his car since he is insured against its theft.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 15QP

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