James Insured His Car With A Renowned Insurance Company That Checked His Driving (1)
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James insured his car with a renowned insurance company that checked his driving skills and verified his accident record before insuring his car. After paying two premiums for this insurance, James took to drinking and driving. This action of Jane is likely to create: a) an economic loss b) a positive externality C) a moral hazard d) diseconomies of scales e) an economic bad
