Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: maegan_martin on Jul 21, 2019
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Recall the Application about how having car insurance affects driving behavior to answer the following
question(s).
Recall the Application. The idea that an insured driver, who bears less than the full cost of a collision, will drive less carefully than an uninsured driver is an example of:
◦ a thin market.
◦ adverse selection.
◦ moral hazard.
◦ asymmetric information.
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moral hazard.
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Excellent
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Great! Please up vote :D