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 more likely to run stop signs
D)workers paid an hourly wage work harder than those on commission

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 more likely to run stop signs
D)​workers paid an hourly wage work harder than those on commission

Quizplus · Accepted Answer

This is not an example of moral hazard. Moral hazard refers to the situation where one party takes additional risks because they do not bear the full cost of their actions. Workers being paid an hourly wage may not work as efficiently as those on commission, but this is not necessarily due to moral hazard.

​Which Is NOT an Example of Moral Hazard

Which Is NOT an Example of Moral Hazard