When People Who Buy Insurance Change Their Behavior After the Purchase

question 157

Multiple Choice

When people who buy insurance change their behavior 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:

Font Size

The measure of how large or small the text appears in a document or webpage, often adjustable by the user.

Change Font

The process of altering the style, size, and appearance of textual characters in a document or application interface.

Alignment

The arrangement or positioning of text, objects, or data within a document, webpage, or application to ensure a cohesive and aesthetically pleasing layout.

Split

A function in computing that divides a window or screen into separate sections to view different parts of a document or dataset simultaneously.