One problem with moral hazard is that:
A) goods and services are produced that no one actually wants or needs.
B) every good produced is unnecessary.
C) no mutually beneficial trades will occur.
D) each good or service produced is wanted or needed.

Question

Quizplus · Accepted Answer

Moral hazard occurs when one party takes on risk because they do not bear the full consequences of that risk, often leading to the production of goods or services that may not be truly needed or wanted by the market.

One Problem with Moral Hazard Is That