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Unformatted text preview: nly low quality consumers drive low quality producers out of the
Question 18 (1 point)
Which of the following is an example of a moral hazard?
1. A person dodges the national draft even though that person feels
a strong sense of national pride
2. A person sees a friend profiled on America's Most Wanted but
cannot decide whether to tell the authorities his or her
3. A person sees a shoplifter but does not know what to do
4. A person knows she shouldn't drink alcohol before driving, but
does so after purchasing car insurance and stating that she is a
5. A person wants to play football on S unday but playing sport on a
S unday conflicts with his religious beliefs Question 19 (1 point)
One way to solve problems of asymmetric information is to have both
parties share in the costs of the exchange. In...
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