Top Posters
Since Sunday
y
2
s
2
a
1
w
1
w
1
i
1
m
1
s
1
c
1
k
1
1
m
1
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
AndrewKraus AndrewKraus
wrote...
Go to Answer
Posts: 1170
Rep: 0 0
7 years ago
Two companies in a city provide insurance for cars—Company A and B. Company A pays 100% of the money required for repair in case of an accident, while Company B pays 70% of the total money required. A research agency has found that Company A's customers have more accidents. Which of the following explains this difference?
A) Moral hazard
B) Adverse selection
C) The presence of positive externalities
D) The presence of negative externalities
Textbook 
Microeconomics

Microeconomics


Edition: 1st
Authors:
Read 75 times
2 Replies
Replies
Answer verified by a subject expert
losteinlostein
wrote...
#1
Top Poster
Posts: 583
Rep: 31 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1
Only I can change my life. No one can do it for me.

Related Topics

AndrewKraus Author
wrote...
#2
7 years ago
Excellent answer, thx
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1127 People Browsing
 173 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 320
  
 215
  
 297
Your Opinion
Which is the best fuel for late night cramming?
Votes: 146
Previous poll results: Who's your favorite biologist?