Multiple Choice
Jane builds her home in an area that is at high risk for flooding, instead of on higher ground. She does so because the low-lying area has a better view and she can get flood insurance. This is an example of
A) adverse selection due to seller private information.
B) adverse selection due to market-based private information.
C) moral hazard.
D) incentive neglect.
Correct Answer:
Verified
Correct Answer:
Verified
Q129: Insurance companies often require deductibles to:<br>A)minimize moral
Q130: When one party to a transaction knows
Q131: What worsens adverse selection in a dental
Q132: Moral hazard is consistent with the idea
Q133: Sellers may choose not to sell a
Q135: Natalia is graduating from university and seeking
Q136: The solutions to adverse selection in a
Q137: How can adverse selection problems due to
Q138: The owner of an apartment building is
Q139: Rihanna would like a better car, and