q13-c3 show all work (statistics) Which of the following is an example of moral

ID: 3221687 • Letter: Q

Question

q13-c3 show all work (statistics)

Which of the following is an example of moral hazard?

Select one:

a. Reckless drivers are the ones most likely to buy automobile insurance

b. After employees sign up for the company health plan that covers all doctors’ visits, they start going to the doctor every time they get a cold

c. Retail stores located in high-crime areas tend to buy theft insurance more often than stores located in low-crime areas

d. Drivers who have many accidents prefer to buy cars with air bags

Example of Moral hazard is

b. After employees sign up for the company health plan that covers all doctors’ visits, they start going to the doctor every time they get a cold

Because in this case insurance company is bearing the cost so employees are spending carelessly.

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