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Business, 20.11.2019 05:31 andrewmena05

When joe didn't have car insurance, he drove very cautiously, because he knew he would have to pay for any damage to his car. now that he has car insurance, he tends to speed more, because he knows that even if he gets into an accident, his insurance will cover it.
the economic problem in this story is known as:
a) adverse selection
b) the winner's curse
c) signaling
d) moral hazard

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