In the Market for Automobile Insurance,moral Hazard Implies That

question 38

Multiple Choice

In the market for automobile insurance,moral hazard implies that

• A) those who are insured might take greater risks.
• B) those who are uninsured might take greater risks.
• C) insured and uninsured alike will take greater risks.
• D) screening will have no effect in the market.
• E) drivers with greater risks are more likely to buy insurance.

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Definitions:

If Statement

A control flow statement that allows branching based on conditions, executing blocks of code if the condition is true.

Value Of Y

A phrase often used in programming and mathematics to refer to the value assigned to or represented by the variable y.

Switch Statement

A control structure that allows multi-way branching based on the value of an expression.

System.out.print

A Java command used to display text on the screen without moving to a new line.