When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a _____________________ .
A) risk
B) hazard risk
C) moral hazard
D) moral risk

Question

Quizplus · Accepted Answer

Moral hazard occurs when people engage in riskier behavior or are less careful because they know they are protected by insurance.

When People Have Insurance Against a Certain Event, the Notion