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
Section30.5: Asymmetric Information
Problem 3ST
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Define moral hazard.
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Moral hazard depicts the behavior of individual or firms changes after buying insurance. It creates market failure.
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