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    Microeconomics
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    Exam 23: Moral Hazard and Adverse Selection: Informational Market Failures
  5. Question
    You Are Approved for an Insurance Policy That Protects Your
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You Are Approved for an Insurance Policy That Protects Your

Question 12

Question 12

Multiple Choice

You are approved for an insurance policy that protects your truck. The next day you become a reckless driver. This is an example of


A) illogical behavior
B) social welfare
C) moral hazard

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