Question
Purchasers of this product may proceed to act more riskily in a classic example of moral hazard. For 10 points each:
[10e] Name this general product purchased by buyers to protect themselves against losses resulting from unforeseen events, like car accidents or hospital visits.
ANSWER: insurance [accept types of insurance, like car insurance or health insurance]
[10m] Moral hazard occurs due to an “asymmetry” in this concept, because the insurance seller cannot monitor the policyholder after the transaction.
ANSWER: information [accept information asymmetry]
[10h] Moral hazard is modeled using contracts between a principal and one of these entities, who may have differing incentives. This is the generic term for an individual in a type of stochastic model in the social sciences “based” on them.
ANSWER: agents [accept agent-based modeling; accept principal–agent problem]
<Vincent Du, Social Science - Economics> ~23571~ <Editor: Vincent Du>
Data
Summary
| Tournament | Edition | Exact Match? | Heard | PPB | Easy % | Medium % | Hard % |
|---|---|---|---|---|---|---|---|
| 2024 PACE NSC | 06/08/2024 | Y | 36 | 15.83 | 100% | 33% | 25% |