An example of moral hazard is
A)people drive as carefully in icy conditions with antilock brakes as without
B)people drive as safely with more airbags as without
C)football players with safer helmets 'spear' with their heads more often when tackling
D)people read the medicine warnings as carefully when self-medicating as with a doctor's prescription

Question

​An example of moral hazard is
A)​people drive as carefully in icy conditions with antilock brakes as without
B)people drive as safely with more airbags as without
C)football players with safer helmets 'spear' with their heads more often when tackling 
D)​people read the medicine warnings as carefully when self-medicating as with a doctor's prescription

Quizplus · Accepted Answer

Moral hazard refers to the tendency of people to take more risks or engage in more reckless behavior when they feel that the consequences of their actions will be borne by someone else. In this case, football players may feel that they can tackle with more force or use their heads more often when wearing safer helmets because they feel more protected from the potential consequences of head injuries. This behavior can increase the likelihood of injury overall, creating a moral hazard. The other choices do not necessarily demonstrate moral hazard, as they do not involve a situation where individuals are insulated from the consequences of their actions.

​An Example of Moral Hazard Is

An Example of Moral Hazard Is