Q
Which of the following best demonstrates the problem of moral hazard ?
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A
A. Josephine doesnβt buy health insurance because it is too expensive, and she is healthy
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B
B. A life insurance company forces enzo to have a medical examination prior to selling him insurance
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C
C. Enzo drives more reckleSSLy after he buys car insurance
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D
D. Fatima chooses to attend a well-respected college
Correct Answer:
C. C. Enzo drives more reckleSSLy after he buys car insurance
