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    Exam 23: Moral Hazard and Adverse Selection: Informational Market Failures
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    A Lack of Information About the Riskiness of Potential Customers
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A Lack of Information About the Riskiness of Potential Customers

Question 27

Question 27

True/False

A lack of information about the riskiness of potential customers forces insurance companies to sell insurance on the assumption that they will face the average number of accidents for the population.

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