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    Exam 20: Uncertainty and Information
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    If Sally Drives Less Carefully After Buying Auto Insurance, She
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If Sally Drives Less Carefully After Buying Auto Insurance, She

Question 166

Question 166

Multiple Choice

If Sally drives less carefully after buying auto insurance, she illustrates


A) adverse selection.
B) negative selection.
C) moral hazard.
D) lemon hazard.

Correct Answer:

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