Adverse selection and moral hazard are two important concepts we learned in class.

(1) Give two specific examples on how to combat adverse selection in an insurance market. (6 points)

(2) Briefly explain what is signaling (from an economists view) and how it may reduce adverse selection. (3 points)

(3) Give two specific examples, one on moral hazard related to an insurance market, one on moral hazard not related to insurance markets. (6 points)