26 Jul DISCUSS WHY IF MOST PEOPLE ARE RISK-AVERSE THEY GAMBLE.
PART 1: Classify each of the following scenarios as an example of adverse selection or moral hazard. Show more PART 1: Classify each of the following scenarios as an example of adverse selection or moral hazard. Be sure to support your answer! 1. Nordstroms cannot predict who is going to be a good shoe salesperson. 2. A health insurance policy that has no deductibles and unlimited use of chiropractic visits is used to the maximum allowed by some patients. 3. Poor drivers seek out car insurance more than good drivers do. 4. Airline companies offer an expensive ticket that allows you to fly immediately and a lower-priced ticket with more flexible use. 5. CEOs shirk and do not maximize the companys profits. PART 2: Discuss why if most people are risk-averse they gamble. What do YOU think? Also please post at least two comments to your fellow classmates. Show less
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