Many spouses complain that their partners tend to "let themselves go" 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 tend to "let themselves go" 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 there is a change in behavior after entering into a contract or agreement because the consequences of one's actions are borne by another party. In the context of marriage, one partner may feel less incentive to maintain their physical appearance or health because they are already in a committed relationship, and the 'cost' of their actions (or lack thereof) does not solely affect them but is shared with their spouse.

​Many Spouses Complain That Their Partners Tend to "Let Themselves

Many Spouses Complain That Their Partners Tend to "Let Themselves