Author Question: Which of the following is an example of a moral hazard? a. A student committing suicide after ... (Read 34 times)

nevelica

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Which of the following is an example of a moral hazard?
 a. A student committing suicide after failing in an examination.
  b. A housekeeper leaving a house unlocked after insuring it against burglary.
  c. An exporter delivering faulty products after receiving a certain fraction of the total payment.
  d. A person deriving utility from a commodity without paying for it.

Question 2

Managers can often been seen as solving property right problems.
  Indicate whether the statement is true or false



abctaiwan

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Answer to Question 1

B

Answer to Question 2

True



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