A situation where people who have taken out insurance behave more recklessly as a result is known as:

Related MCQs

• When people behave in ways that involve increased risk because they have insurance, this is known as
• If the government subsidizes the health insurance costs of individuals because individuals do not sufficiently realize the importance of having health insurance, which of the following justifications for government intervention is being used?
• When the average buyer of an insurance policy is likely to have higher risk than others in his class, this is known as
• If reckless drivers are more likely to buy automobile insurance than safe drivers are,
• Suppose that you have complete health insurance that covers all expenses. You will use medical care up to the point where your:
• The marginal conditions must be satisfied for the attainment of a Pareto-efficient situation in an economy :
• An insurance company can protect itself from moral hazard by:
• The government can address by providing universal health insurance coverage and charging uniform premiums.
• Which of the following is a reason why employers are the predominant source of insurance?
• Adverse selection in competitive insurance markets harms