The ability of insurance to spread risk is limited by a. risk aversion and moral hazard. b.

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The ability of insurance to spread risk is limited by

a. risk aversion and moral hazard.

b. risk aversion and adverse selection.

c. moral hazard and adverse selection.

d. risk aversion only.

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Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

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Question Posted: Feb 26, 2024 03:01 AM

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The ability of insurance to spread risk is limited by a. risk aversion and moral hazard. b.

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The correct answer is c moral hazard and adverse selection Insurance is a financial mechanism that h...View the full answer

Essentials Of Economics

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