For the following cases, explain whether there is a problem of adverse selection or moral hazard: (2 points each)

a. a classmate bets you $10,000 that she will fail this exam

b. a person with an existing, serious medical condition applies for health insurance

c. I decide to take up sky diving after I buy life insurance

d. Wells Fargo offers credit cards with an interest rate of 20% on unpaid balances to anyone who wants on.

e. you offer to do the homework of a friend if the friend runs out of time