Which is NOT an example of moral hazard
A)people eat more at all-you-can-eat buffets
B)loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled
C)Drivers of heavier,safer cares are less likely to run stop signs
D)workers on commission work harder than those paid an hourly wage

Question

​Which is NOT an example of moral hazard
A)​people eat more at all-you-can-eat buffets
B)loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled
C)Drivers of heavier,safer cares are less likely to run stop signs
D)​workers on commission work harder than those paid an hourly wage

Quizplus · Accepted Answer

Moral hazard occurs when a party is more likely to take risks because they do not bear the full consequences of those risks. In option C, drivers of heavier, safer cars being less likely to run stop signs is not an example of moral hazard, as it suggests safer behavior rather than riskier behavior due to perceived protection.

​Which Is NOT an Example of Moral Hazard

Which Is NOT an Example of Moral Hazard