Moral hazard exists chiefly because of
A) economies of scale.
B) diseconomies of scale.
C) private information.
D) public information.

Question

Quizplus · Accepted Answer

Moral hazard arises when one party in a transaction has more information than the other, typically private information, leading to a situation where they may take risks because they do not bear the full consequences of their actions.

Moral Hazard Exists Chiefly Because of