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In the Market for Automobile Insurance,moral Hazard Implies That

Question 38

Multiple Choice

In the market for automobile insurance,moral hazard implies that


A) those who are insured might take greater risks.
B) those who are uninsured might take greater risks.
C) insured and uninsured alike will take greater risks.
D) screening will have no effect in the market.
E) drivers with greater risks are more likely to buy insurance.

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