Multiple Choice
Consider the following two situations. Irene accepts a job where she will be driving in dangerous traffic, so she seeks auto insurance. After Victor buys health insurance, he visits the gym less frequently. Which of these person's actions illustrates moral hazard?
A) Both Irene's and Victor's
B) Irene's but not Victor's
C) Victor's but not Irene's
D) Neither Victor's nor Irene's
Correct Answer:
Verified
Correct Answer:
Verified
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