Which of the following is an example of moral hazard? (hint: please consider all the three conditions under which moral hazard due to insurance would occur) A woman who uses her fireplace only after she buys homeowner's insurance An individual goes to an all-you-can-eat buffet and eat more than optimal, because a price distortion induces overconsumption. A previously uninsured man who enrolls in his workplace health insurance plan after being diagnosed with multiple sclerosis (assume no behavior change after having insurance).

Which of the following is an example of moral hazard? (hint: please consider all the three conditions under which moral hazard due to insurance would occur) A woman who uses her fireplace only after she buys homeowner's insurance An individual goes to an all-you-can-eat buffet and eat more than optimal, because a price distortion induces overconsumption. A previously uninsured man who enrolls in his workplace health insurance plan after being diagnosed with multiple sclerosis (assume no behavior change after having insurance).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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