Many spouses complain that their partners put less effort into their relationship after getting married.This is an example of
A)Moral hazard
B)Adverse selection
C)Terrible husbands
D)None of the above

Question

​Many spouses complain that their partners put less effort into their relationship after getting married.This is an example of
A)​Moral hazard
B)Adverse selection
C)Terrible husbands
D)​None of the above

Quizplus · Accepted Answer

Moral hazard occurs when one party in a transaction has the opportunity to assume additional risks that negatively affect the other party because they do not bear the full consequences of their actions. In the context of marriage, if one spouse puts less effort into the relationship after getting married, knowing that they already have the commitment of the other, it exemplifies moral hazard. They may feel less incentivized to maintain the same level of effort or behavior that was present before the marriage, as the perceived risk of losing the relationship may seem lower.

​Many Spouses Complain That Their Partners Put Less Effort into Their

Many Spouses Complain That Their Partners Put Less Effort into Their