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The government of Genovia introduced an unemployment insurance that ensures full payment of former ...

The government of Genovia introduced an unemployment insurance that ensures full payment of former wages to unemployed workers. A study conducted a few months after the introduction of this policy showed that several unemployed workers in Genovia were not actively searching for work. Such behavior is an example of ________.
A) adverse selection
B) moral hazard
C) the prisoners' dilemma
D) the free-rider problem

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Microeconomics

Edition: 1^st

Authors: Acemoglu, Laibson, List

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