Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even though it is federally subsidized. This illustrates: explain your answer The adverse selection problem The moral hazard problem A failure of the market for externalities The existence of positive externalities

Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even though it is federally subsidized. This illustrates: explain your answer The adverse selection problem The moral hazard problem A failure of the market for externalities The existence of positive externalities

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 10QP

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