Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

What action can be taken to help overcome moral hazard?

  • Acharging the same insurance premium to all people in the same age group
  • Bdesigning insurance contracts so that the insurance company and client share any loss
  • Cgiving unconditional financial support to banks to protect jobs
  • Dguaranteeing jobs for bank managers to provide a sense of security

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