This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is an application of the moral-hazard problem? a. a person buying insurance ... (Read 94 times)

serike

  • Hero Member
  • *****
  • Posts: 542
on: Jul 1, 2018
Which of the following is an application of the moral-hazard problem?
 a. a person buying insurance after a cancer diagnosis.
  b. an salesperson who is not paid on commission being rude to customers.
  c. coffee hounds buying the menu item meant for lower-demand consumers.
  d. only inexperienced workers applying for a managerial job advertised with a relatively low salary.

Question 2

An example of adverse selection is
 a. purchasing a new car sight unseen based on the recommendation of a neighbor.
  b. high health-insurance premiums resulting from the poor health of people who buy policies.
 c. suppliers who charge more for better quality clothing than for lower quality clothing.
  d. being talked into buying a low-quality item because the price is lower.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

vickyvicksss

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

b


serike

  • Member
  • Posts: 542
Reply 2 on: Jul 1, 2018
Gracias!

ricroger

  • Member
  • Posts: 352
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

The Five Daughter Problem The Five Daughter Problem
Mahatma Gandhi and Corrie ten Boom exemplified Kohlberg’s stage 6 moral thinking. They devoted ... Mahatma Gandhi and Corrie ten Boom exemplified Kohlberg’s stage 6 moral thinking. They devoted ...
How to solve an exponential decay problem involving first order decay How to solve an exponential decay problem involving first order decay
Problem Problem
Chemistry - Problem Exercise Chemistry - Problem Exercise
Problem Problem
Video: Glycolysis - Introduction to ATP and the burning of sugar

For a complete list of videos, visit our video library