If an Individual Is Less Careful About Avoiding Accidents or Illness

question 227

Multiple Choice

If an individual is less careful about avoiding accidents or illness because she has health insurance, this is an example of

• A) the free-rider problem.
• B) the moral hazard problem.
• C) the adverse selection problem.
• D) the Coase theorem.

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Definitions:

Indian Wars

A series of conflicts between European settlers/colonists and Native American tribes over land rights and sovereignty, spanning several centuries in North America.

Treaty of Paris

The 1783 agreement that ended the Revolutionary War, recognizing American independence from Britain. Additionally, a treaty by the same name ended the Spanish-American War in 1898.

Puerto Rico

A Caribbean island and unincorporated U.S. territory with a unique culture that blends Indigenous, African, and Spanish influences.

Official Possession

The state of legally holding or owning something recognized by government or authoritative bodies.