Which of the Following Statements Is an Example of Moral

question 9

Multiple Choice

Which of the following statements is an example of moral hazard?

• A)A car driver with car insurance drives more safely
• B)A babysitter allows children to watch more television than the children's parents would wish
• C)Buyers of private health insurance know more about their own health problems than do health funds
• D)Sellers of used cars know their cars' defects whereas buyers often do not

Comprehend the concept of market surplus including consumer surplus and producer surplus.

Calculate the impacts of taxes on market transactions and prices.

Grasp the conditions under which transactions create wealth or surplus.

Recognize the role of government intervention in markets.

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Definitions:

Differences

Distinct characteristics or aspects that set people, things, or concepts apart from each other.

Boston

A historic city in Massachusetts, United States, one of the oldest cities in the country, and site of several key events during the American Revolution, such as the Boston Tea Party and the Battle of Bunker Hill.

American Revolution

The period of political and military conflict (1775-1783) between the Thirteen Colonies and the British Empire, leading to the independence of the United States.

Instigating

The act of provoking or initiating an event, action, or situation, often with the intention of causing something specific to happen.