Question 14 Random, unbiased errors in establishing the damages will create an incentive for potential injurers to exercise more than the socially optimal amount of care. O True O False

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter16: Information, Risk, And Insurance
Section: Chapter Questions
Problem 15RQ: How can deductibles, copayments, and coinsurance reduce moral hazard?
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Question 14
Random, unbiased errors in establishing the damages will create an incentive for potential injurers to exercise more than the socially optimal amount of care.
O True
O False
>Moving to another question will save this response.
Transcribed Image Text:Question 14 Random, unbiased errors in establishing the damages will create an incentive for potential injurers to exercise more than the socially optimal amount of care. O True O False >Moving to another question will save this response.
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