Multiple Choice
Which of the following is (are) examples of moral hazard?
I. An unemployed worker reduced his effort to find a job after he became eligible for unemployment insurance.
II. Banks make exceptionally risky investments because they expect government bailouts if their investments fail.
III. After a university made the morning-after pill available on campus, more students became sexually promiscuous.
A) I, II, and III
B) I
C) II
D) I and II
Correct Answer:
Verified
Correct Answer:
Verified
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