Suppose a Person with Automobile Collision Insurance Is More Likely

question 68

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.

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Definitions:

Race

A social construct that categorizes people based on physical characteristics, such as skin color, perceived to signify distinct populations.

Age

A measure of the amount of time an individual or object has existed from a particular point of origin.

Culture of Violence

A societal pattern that normalizes and glorifies violence as a way to resolve conflicts.

Drug Cartels

Organized criminal groups involved in the production, distribution, and sale of illegal drugs.