Many People Smoke and Continue Poor Eating Habits Because They

question 152

Multiple Choice

Many people smoke and continue poor eating habits because they have health insurance. This is an example of:

• A) moral hazard.
• B) signaling.
• C) reputation.
• D) adverse selection.

---

Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Opportunity Cost

The price paid for not choosing the next most favorable option when deciding or picking between different possibilities.

Term Deposit

A bank deposit with a fixed term and typically a fixed rate of interest, where withdrawal can only occur after the term ends without penalty.

Holding Cash

The practice of keeping money in the form of physical currency as a store of value or for transactions.