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An article in the Economist magazine observes: Insurance companies often suspect the only people who buy insurance are the ones most likely to collect. Source:
An article in the Economist magazine observes:
"Insurance companies often suspect the only people who buy insurance are the ones most likely to collect."
Source: "The Money Talks," Economist, December 5, 2008.
What do economists call the problem being described here?
Group of answer choices
Principal-agent problem.
Moral hazard.
Adverse selection.
All of the above.
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