Options:
A.And the example with Brad illustrate adverse selection.
B.and the example with Brad illustrate moral hazard.
C. illustrates adverse selection; the example with Brad illustrates moral hazard.
D.illustrates moral hazard; the example with Brad illustrates adverse selection.
Answer:C. Illustrates adverse selection; the example with Brad illustrates moral hazard.
Explanation:
A Moral hazard is a term that is connected with Financial risks, a moral hazard has been described as the risk exposure especially of a financial nature caused by the activities and actions of another partner.
In insurance, it is also known as when a person increases their chances of exposure to risk because the burden arising from the risk is paid for or carried by another partner which may be an insurance company.
Answer: B. formal sanctions.
Explanation:
The formal sanctions are the actions that are official and legalized in nature and these are enforced by an authoritative force.
The rewards and punishments in the formal sanctions are official and enforcement by the law and these are also punishment in the academic setting.
The sanctions are in response for the approval and disapproval of certain behavioral response and actions. These sanctions are generally approved by the laws and rules.
The university can punished the person and may try to restrict the probation serving drinks to the minors is a offense. The punishment comes under the formal sanctions.
The correct answer based on the given statement above is TRUE. It is true that some factors that contribute to a person's <span>optimal personal health include nutrition, exercise, and genetics. These are considered necessary in order to achieve optimal health. Hope this answers your question. </span>