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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Definitions:

Background Factors

The underlying conditions or influences that shape an individual's behavior, attitudes, or achievements, often considered in studies of social and psychological development.

Uniform Crime Report

An annual report compiled by the FBI to track the incidence of crime in the United States and to provide statistics.

Crime In The United States

Refers to unlawful acts punishable by the state that occur within the United States, with its nature, frequency, and legal responses varied across regions.

Norm Violations

Actions or behaviors that go against the accepted standards or rules of a society or group, often eliciting negative responses from others.