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    Exam 14: Imperfect Information: Adverse Selection and Moral Hazard
  5. Question
    Suppose Air Bags Make People Feel Safer and Hence They
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Suppose Air Bags Make People Feel Safer and Hence They

Question 80

Question 80

Multiple Choice

Suppose air bags make people feel safer and hence they drive more recklessly.This is an example of


A) moral hazard.
B) adverse selection.
C) asymmetric information.
D) a lemon market.

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