When joe didn't have health insurance, he acted very cautiously, because he knew he would have to pay for any medical bills he incurred. now that he has health insurance, he engages in more risky activities, such as skydiving and snowboarding, because he knows that if he gets hurt, his health insurance will cover it.
the economic problem in this story is known as:
a. signaling
b. moral hazard
c. adverse selection
d. screening

David paid $975,000 for two beachfront lots in coastal south carolina, with the intention of building residential homes on each. two years later, the south carolina legislature passed the beachfront management act, barring any further development of the coast, including david's lots. when david files a complaint to seek compensation for his property, south carolina refuses, pointing to a passage in david's own complaint that states "the beachfront management act [was] properly and validly designed to south carolina's " is south carolina required to compensate david under the takings clause?