Identify each of the following as an adverse selection or a moral hazard problem a. A person with car insurance fails to lock his car doors when he shops at a mall. b. A person with a family history of cancer purchases the most complete health coverage available. c. A person with health insurance takes more risks on the ski slopes of Aspen than he would without health insurance. d. A college professor receives tenure (assurance of permanent employment) from her employer. e. A patient pays his surgeon before she performs the surgery
Identify each of the following as an adverse selection or a moral hazard problem a. A person with car insurance fails to lock his car doors when he shops at a mall. b. A person with a family history of cancer purchases the most complete health coverage available. c. A person with health insurance takes more risks on the ski slopes of Aspen than he would without health insurance. d. A college professor receives tenure (assurance of permanent employment) from her employer. e. A patient pays his surgeon before she performs the surgery
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Identify each of the following as an adverse selection or a moral hazard problem
a. A person with car insurance fails to lock his car doors when he shops at a mall.
b. A person with a family history of cancer purchases the most complete health coverage available.
c. A person with health insurance takes more risks on the ski slopes of Aspen than he would without health insurance.
d. A college professor receives tenure (assurance of permanent employment) from her employer.
e. A patient pays his surgeon before she performs the surgery.
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