Problem
1. How can insurance companies mitigate the problems of adverse selection?
2. What is moral hazard? Describe the example of moral hazard in the insurance market.
3. How can insurance providers use incentives to reduce moral hazard in the insurance market?
4. What market characteristics can create problems in a principal?-?agent relationship?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.