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

Question

Quizplus · Accepted Answer

The tendency for a person to engage in dishonest or otherwise undesirable behaviour when they are imperfectly monitored is known as moral hazard. This occurs because the person knows that they are less likely to be caught or face consequences for their actions. Option A (asthmetric informetion) is not a term related to this phenomenon. Option C (moral delinquency) refers to a broader concept of immoral or illegal behavior in general rather than specifically in relation to monitoring. Option D (abverse selection) refers to the tendency for people with higher risk levels to be more likely to seek insurance or other protection, which is not related to the concept of imperfect monitoring.

The Tendency for a Person Who Is Imperfectly Monitored to Engage