Which of the following statements is an example of moral hazard?

Question

Quizplus · Accepted Answer

Moral hazard refers to the tendency of individuals to take greater risks or engage in undesirable behavior when they are insulated from the consequences of their actions. In this case, the babysitter knows that the parents will not be present to monitor the amount of television the children watch, and therefore allows them to watch more than they normally would, increasing the risk of negative consequences like obesity or academic underperformance.

Which of the Following Statements Is an Example of Moral