Multiple Choice
Solutions to the problems created by moral hazard include:
A) offering salespeople in stores a straight salary rather than a commission on sales.
B) setting up many stores and restaurants that are part of a national chain as franchises, with the owner undertaking quite a lot of risk.
C) allowing property owners to overinsure their buildings.
D) diversification.
Correct Answer:

Verified
Correct Answer:
Verified
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