Author Question: All of the following involve a moral hazard problem EXCEPT A) an individual driving carelessly ... (Read 109 times)

maegan_martin · **on:** Jun 30, 2018

All of the following involve a moral hazard problem EXCEPT

A) an individual driving carelessly after buying a comprehensive insurance policy for a Ford Pinto.
B) the IMF bailing Mexico out of a financial crisis, with promises to do the same for other nations that might face financial problems.
C) the requirement of banking institutions that owners invest a substantial portion of their own capital in their bank.
D) membership in FDIC (Federal Deposit Insurance Corporation) by your local bank.

Question 2

Which of the following is an example of intraindustry trade?

A) Trading peanut oil for tractors
B) Trading crude oil for automobiles
C) Trading Nokia smartphones for Apple iPhones
D) Trading jeans for cotton

katheyjon · **Reply #1 on:** Jun 30, 2018

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