In communities where more people carry property insurance you would expect people to be
A) less careful about securing their possessions.
B) more careful about securing their possessions.
C) less likely to engage in behaviors that would be classified as moral hazard.
D) paying less for property insurance relative to communities where fewer people carry property insurance.

Question

Quizplus · Accepted Answer

When more people carry property insurance, they may become less careful about securing their possessions due to the reduced financial risk, a phenomenon known as moral hazard.

In Communities Where More People Carry Property Insurance You Would