Example of moral hazard, Which of the following is an

Example of moral hazard

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Reference no: EM13815111

Which of the following is an example of moral hazard?

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

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

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

d. 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.

Reference no: EM13815111

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