An example of moral hazard is
A)workers working diligently even though the boss is not looking
B)health care insured workers dieting and exercising
C)drivers of safer cars texting on their phones while driving
D)borrowers investing their loan proceeds exactly as the bank requires

Question

​An example of moral hazard is
A)​workers working diligently even though the boss is not looking
B)health care insured workers dieting and exercising
C)drivers of safer cars texting on their phones while driving
D)​borrowers investing their loan proceeds exactly as the bank requires

Quizplus · Accepted Answer

Moral hazard refers to a situation where one party takes more risks or behaves more recklessly because they are insulated from potential negative consequences. In this case, drivers of safer cars may feel a false sense of security and be more likely to engage in distracted driving behaviors like texting because they feel less likely to be involved in accidents.

​An Example of Moral Hazard Is

An Example of Moral Hazard Is