A Person Starting to Drive More Recklessly After Signing a Contract

question 84

Multiple Choice

A person starting to drive more recklessly after signing a contract with an automobile insurance company is an example of

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

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Definitions:

Arduous Tasks

Activities or jobs that are extremely difficult, requiring a lot of effort and perseverance to complete.

Enslaved Women

Women who were subjected to slavery, deprived of personal freedom and forced to perform labor or services against their will, historically and across various cultures.

Large Plantations

Extensive farms in the pre-Civil War South, often where enslaved people were forced to work.

Slave Hiring

A system wherein slaveowners leased out their slaves to work for others, typically for a specified period, with wages paid to the owner rather than the slave.