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    Principles of Economics Study Set 8
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    Exam 27: Tools of Finance
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    Suppose Dave Drives More Recklessly When He Has Car Insurance
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Suppose Dave Drives More Recklessly When He Has Car Insurance

Question 70

Question 70

True/False

Suppose Dave drives more recklessly when he has car insurance than when he does not have car insurance. This is an example of the moral hazard problem associated with insurance.​

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