Many police officer positions require the applicant to have a college degree even though the tasks of a police officer rarely call upon college course material.  Speculate on why police departments do not increase their applicant pool by dropping this requirement and how asymmetric information, moral hazard, and adverse selection are involved?

Q: Which of the following is an example of adverse selection? Group of answer choices A safe driver…

A: Answer Adverse selection means presence incomplete information about the buyers and sellers about…

Q: Which of the following statements is NOT correct?   Question 3 options: Asymmetric…

A: Asymmetric Information arises when there is an imbalance of power in transactions due to an unequal…

Q: What is the mostly commonly used utility functions for the following and why: Risk Aversion Risk…

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Q: Distinguish the difference between adverse selection and moral hazard.

A: Adverse selection is observed in used cars market. Here consumer may not know the quality of car and…

Q: If people get higher pay from their insurance than their premiums, will this increase or decrease…

A: Moral hazard refers to situation where a party engages itself in more risky activities after the…

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Q: A way to help overcome adverse selection is to ...    require a deductible be paid before benefits…

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Q: Participate in a discussion regarding private information as shown in Section 12.3 in the textbook.…

A: Participate in a discussion regarding private information as shown in Section 12.3 in the textbook.…

Q: Differentiate between adverse selection and moral hazard problems with one examples

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Q: Problem 1: For each of the following three scenarios state whether these are examples of moral…

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Q: In the mid-1990s, the state of New Jersey revised its rules for the individual insurance market and…

A:

Q: Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers…

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Q: Which of the following are possible reasons why empirical studies do not always find evidence for…

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Q: A claims representative suspects that an insured has committed fraud in submitting a claim for…

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Q: Which of the following is an example of moral hazard? Group of answer choices High-quality products…

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Q: How does the problem of moral hazard affect the safety of sports such as football and boxing when…

A: A policy represents a contract in which an individual or corporation receives financial protection…

Q: ear in the U.S., school bus accidents claim the lives of about 10 children. Noting that school…

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Q: Most NGOs rely on soft power, trying to persuade others to change their behavior without using…

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Q: Consider the following example. A risk-neutral worker can choose high or low effort. The worker's…

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Q: Consider the following example. A risk-neutral worker can choose high or low effort. The manager…

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Q: Suppose there are only two kind of cars in the market for used cars: lemons and good cars. A lemon…

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Q: There two major types of market asymmetry; these are MORAL HAZARD and ADVERSE SELECTION. Please…

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A:

Q: How does asymmetric information about consumer types affect market outcomes in a scenario where…

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Q: Analyze the six strategies police administrators use to modify the attitudes of their subordinates

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Q: Conflict is a natural and expected part of professional life.

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Q: How have conmunications changed over the past 30 years? For the better or worse?

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Q: Suppose that a person's utility function is the square root of wealth. Suppose the person earns…

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Q: In the automobile insurance market, adverse selection occurs when Group of answer choices A) drivers…

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Q: rovide an intuitive discussion of how adverse selection affects the used-car market. Describe one…

A: Adverse selection refers to the making the less optimal choice which leads to market failure, that…

Q: Suppose the equilibrium price for good quality used cars is $20,000. And the equilibrium price for…

A: Adverse selection occurs when one party to a contract has more information than the other. Here the…

Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.