When people behave in ways that involve increased risk because they have insurance, this is known as

Related MCQs

• A situation where people who have taken out insurance behave more recklessly as a result is known as:
• When the average buyer of an insurance policy is likely to have higher risk than others in his class, 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?
• Non diversifiable risk affects I. the opportunity cost of capital II. should enter into the risk premium
• Non diversifiable risk arises because
• Suppose that you have complete health insurance that covers all expenses. You will use medical care up to the point where your:
• Diversifiable risk can be eliminated by
• The risk premium for a capital investment by comparing the expected return on that investment with the expected return on the entire stock market is measured by
• An insurance company can protect itself from moral hazard by:
• The government can address by providing universal health insurance coverage and charging uniform premiums.