Question

1. Are the following examples of Adverse Selection or of Moral Hazard?

   1. An employee who has a long-term contract with a firm stops working as hard as he

      might have otherwise.

   2. People with good health insurance make more visits to the doctor for very minor

      health problems.

   3. . A mechanic performs needless repairs on a car to increase his profit. e. Healthy people decline to purchase health insuranc

   4. Healthy people decline to purchase health insurance

   5. The people most likely to sign up for a dating service are losers.

   6. Your cousin gets you to invest in his new dog-walking business, but then he just lies

      on the couch all day watching DVDs.