Multiple Choice
Which of the following is an example of moral hazard?
A) There are likely more cars of low quality than of high quality offered for sale without warranties in the used car market.
B) An individual who eats well and exercises regularly chooses not to purchase health insurance.
C) An individual drives less cautiously after obtaining automobile insurance.
D) A car salesman offers a full warranty on a used car for 90 days.
Correct Answer:
Verified
Correct Answer:
Verified
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