The tendency for a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behaviour is known as:
A)asymmetric information
B)moral hazard.
C)moral delinquency
D)adverse selection

Question

Quizplus · Accepted Answer

Moral hazard refers to the tendency for a person to take risks or engage in undesirable behavior when they are not fully accountable for the consequences of their actions. This occurs when there is imperfect monitoring of a person's behavior, which can lead to an increase in unethical or dishonest behavior. Asymmetric information refers to a situation where one party has more information than the other, while moral delinquency and adverse selection refer to other concepts in economics and finance.

The Tendency for a Person Who Is Imperfectly Monitored to Engage