In a Television Advertisement for AFLAC Supplemental Health Insurance, an Ice

Multiple Choice

In a television advertisement for AFLAC supplemental health insurance, an ice skater says to his skating partner, "Do you want to try a triple jump?" She responds, "Why not, I have AFLAC." This
Response illustrates the

A) principal-agent problem.
B) adverse selection problem.
C) moral hazard problem.
D) free-rider problem.