Question: Complete the following table by determining which economic problem is characterized in each of the scenarios provided. Adverse Selection Moral Hazard Scenario Alex would like
Complete the following table by determining which economic problem is characterized in each of the scenarios provided. Adverse Selection Moral Hazard Scenario Alex would like to buy a used car, but he is not a mechanic and, thus, cannot assess the quality of a cor directly before owning it. Alex believes that owners of the worst cars are more willing to sell their vehicles than owners of the best cars. Because of this, Nex believes that used cars for sale are probably of low quality When Susan didn't have health insurance, she acted very cautiously because she knew she would have to pay for any medical bilis she incurred. Now that the has bealth insurance, she engages in more risky activities skydiving and Snowboarding--dechute she knows that if she gets hurt, her health insurance will cover it
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