Answered: Which of the following concepts can be…

Which of the following concepts can be used to characterise the relationship between an insurer and insurance applicants? a. Nash equilibrium b. asymmetric information c.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.

Question

Which of the following concepts can be used to characterise the relationship between an insurer and insurance applicants?

Nash equilibrium

asymmetric information

Pareto efficiency

firm-specific assets

employment rent

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