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:
1. Pharmacology is the study of medicines
2. Pharmacology is the use of drugs to relieve suffering.
Explanation:
Both these statements refer to pharmacology and therapeutics. Pharmacology is the study of mechanisms of actions of different drugs and their absorption and assimilation in the body. These drugs are used as a therapy to relieve suffering of humans. Hence, the statements given by students does not only explained the study of drugs but their therapeutic functions also.
