An example of moral hazard is

a. people drive less carefully in icy conditions with antilock brakes than without

b. people drive as safely with more airbags as without

c. football players avoid 'spearing' with their heads even with safer helmets

d. people read the medicine warnings as carefully when self-medicating as with a doctor's prescription

The introduction of seat belts increased the number of accidents, even though the number of fatalities decreased. This is most likely a result of

a. Moral hazard

b. Adverse selection

c. seat belts distracting drivers

d. None of the above

Which of the following problems are created by an information asymmetry

a. Moral hazard

b. Adverse selection

c. Both of the above

d. None of the above

Moral hazard is caused by

a. Hidden actions

b. Hidden information

c. Both of the above

d. None of the above