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    Microeconomics Theory Study Set 1
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    Exam 18: Asymmetric Information
  5. Question
    A Person Who Generally Drives Without a Seat Belt on Does
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A Person Who Generally Drives Without a Seat Belt on Does

Question 3

Question 3

Multiple Choice

A person who generally drives without a seat belt on does not reveal this to his automobile insurance company before he purchases insurance.This is an example of


A) adverse selection.
B) moral hazard.
C) signaling.
D) screening.

Correct Answer:

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