Which of the following examples would be considered adverse selection, moral hazard, or both? Explain.

1. CEOs who do not seek to maximize the company's profits after they have been hired. *

2. A bad driver who decides to get the least amount of car insurance from Progressive. *

3. Blue-Cross Blue-Shield of Florida has no deductibles and allows for unlimited use of chiropractic visits. *

4. Macy's department store does not know who is going to be a good or bad shoe salesperson. *