Violet Has Automobile Insurance with Full Coverage and No Deductible

question 35

Multiple Choice

Violet has automobile insurance with full coverage and no deductible. As a result, Violet is a very careless driver. This is an example of:

• A) adverse selection.
• B) screening.
• C) moral hazard.
• D) asymmetric information.

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Definitions:

Modelling

The process of representing a real-world system or phenomenon through a set of mathematical equations, simulations, or physical replicas.

Extinction

In behavior, the process by which a previously reinforced behavior is weakened by no longer providing reinforcement.

Negative Reinforcement

A behavioral technique that strengthens a behavior by removing or avoiding a negative outcome or stimulus.

Organizational Behaviour

The study of how people interact within groups, particularly the workplace, and how this affects the performance of businesses.