Multiple Choice
Which of the following is an example of a moral hazard?
A) A student committing suicide after failing in an examination.
B) A housekeeper leaving a house unlocked after insuring it against burglary.
C) An exporter delivering faulty products after receiving a certain fraction of the total payment.
D) A person deriving utility from a commodity without paying for it.
Correct Answer:
Verified
Correct Answer:
Verified
Q40: An insured person's incentive to behave in
Q41: If too many high risk policyholders migrate
Q42: An individual will be considered risk neutral
Q43: Which of the following is an example
Q44: _ refers to the situation faced by
Q46: Assume that a single insurance plan covers
Q47: The parties to a contract will choose
Q48: Which of the following is an example
Q49: Steve holds 100 shares of a company
Q50: Which of the following can be a