Moral hazard is an example of

Name: Moral hazard is an example of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Moral hazard refers to a situation where one party, often protected from the consequences of their actions by insurance or other means, takes more risks because they do not bear the full costs of those risks. This creates a reverse incentive where the party is encouraged to take more risks because they are not fully liable for the negative outcomes.

Moral Hazard Is an Example of