Moral hazard is the idea that when people are insured against the consequences of a risk, they will engage in risker behavior.

Name: Moral hazard is the idea that when people are insured against the consequences of a risk, they will engage in risker behavior.
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Question

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This is a common concept in economics and insurance where individuals may not take necessary precautions or reduce risky behavior if they know the negative outcomes will be covered by insurance or other forms of protection.

Moral Hazard Is the Idea That When People Are Insured