Q
Which of the following is an example of moral hazard ?
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A
A. After gull buys fire insurance, he begins to smoke cigarettes in bed.
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B
B. None of these answers demonstrate moral hazard
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C
C. Mahmood has been feeling poorly lately so he seeks health insurance
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D
D. All of these answers demonstrate moral hazard
Correct Answer:
A. A. After gull buys fire insurance, he begins to smoke cigarettes in bed.
