Examlex
A police officer's attempt to terminate a dangerous, high-speed car chase that threatens the lives of innocent bystanders does not violate the Fourth Amendment, even when it places the fleeing motorist at risk of serious injury or death.
Health Insurance
A type of insurance that covers the whole or part of the risk of a person incurring medical expenses, spreading the risk over numerous individuals.
Adverse Selection
A situation in which sellers have information that buyers do not have, or vice versa, leading to an inefficient market outcome.
Moral Hazard
A situation in which there is a tendency to take riskier behavior when protected from the consequences of that behavior, often seen in insurance and finance.
Asymmetric Information
A situation in economics where one party in a transaction has more or better information than the other, leading to potential imbalances in decisions and market outcomes.
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