An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without
b. people drive as safely with more airbags as without
c. football players 'spear' with their heads when tackling more often with safer helmets
d. people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription
Question 2
Self insurance refers to: the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company. Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure.
a. starting one's own insurance company
b. buying insurance from a not for profit entity
c. setting aside fund to pay for medical care expenses instead of buying insurance
d. none of these
e. both a and b
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