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Author Question: When people by insurance they often adopt risky behavior. This is an example of A) adverse ... (Read 81 times)

JGIBBSON

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When people by insurance they often adopt risky behavior. This is an example of
 A) adverse selection.
  B) moral hazard.
  C) a negative externality.
  D) moral hazard and a negative externality.

Question 2

Cartel agreements are more likely to succeed if:
 a. there are a large number of firms in the industry producing identical products.
  b. there are few firms in the industry producing identical products.
 c. there are a large number of firms in the industry producing differentiated products.
  d. there are a few firms in the industry producing differentiated products.



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nathang24

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Answer to Question 1

B

Answer to Question 2

b




nathang24

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