Multiple Choice
Which of the following would be an example of a moral hazard problem?
A) a person in poor health who purchases life insurance
B) a person who is taxed on the purchase of a carton of cigarettes
C) a person who purchases auto insurance and then drives more recklessly
D) a person who receives a subsidy from the Federal government to insulate a home
Correct Answer:
Verified
Correct Answer:
Verified
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