Suppose a Person with Automobile Collision Insurance Is More Likely

question 51

Multiple Choice

Suppose a person with automobile collision insurance is more likely to try to drive on an icy road in the middle of winter than that person would be if he or she didn't have automobile collision. This is an example of

• A)adverse selection.
• B)moral hazard.
• C)the free-rider effect.
• D)asymmetric information before exchange.
• E)none of the above

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