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An Auto-Insurance Company Introduces an Anti-Theft Device That Records How

Question 81

Multiple Choice

An auto-insurance company introduces an anti-theft device that records how well the customer has secured his car.If the driver locks his car with the monitored lock every day,the rates go down.The company is trying to solve a __________problem


A) ​Adverse selection
B) Moral hazard
C) Forced bankruptcy
D) ​None of the above

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