When People Who Buy Insurance Change Their Behaviour After the Purchase

question 23

Multiple Choice

When people who buy insurance change their behaviour after the purchase because they are protected from loss by the insurance, the insurance market is said to face the problem of

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

---

Definitions:

Mouth

The opening in an organism's body that usually begins the digestive tract, where food is ingested.

Pharynx

A muscular tube that connects the mouth and nasal passages with the esophagus and larynx, serving both the respiratory and digestive systems.

Large Intestine

The last part of the digestive system, responsible for water absorption and the formation of feces.

Vitamin K

Vitamin K is a fat-soluble vitamin essential for the production of blood clotting factors and responsible for regulating bone metabolism.