An example of moral hazard is
A)people drive as carefully in icy conditions with antilock brakes as without
B)people drive less safely with more airbags as without
C)football players avoid 'spearing' with their heads even with safer helmets
D)people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription

Question

Quizplus · Accepted Answer

Moral hazard refers to the tendency for people to take more risks or act less carefully when they are insulated from the consequences of their actions. In this case, having more airbags in a car may give drivers a false sense of security, leading them to drive less safely than they would without airbags.

An Example of Moral Hazard Is