People who take much less care to prevent their cars from being damaged or stolen because their vehicles are insured serve as examples of

Question

Quizplus · Accepted Answer

Moral hazard refers to the risk-taking behavior of individuals or entities that are insured or protected against losses. In this case, people who are less careful with their vehicles because they know they are insured are exhibiting moral hazard.

People Who Take Much Less Care to Prevent Their Cars