________ is the phenomenon when one party that is protected from risk behaves differently than if it were fully exposed to the risk.

Question

Quizplus · Accepted Answer

Moral hazard refers to the incentives that arise when one party is protected from risk, leading them to behave differently than if they were fully exposed to the risk. This can result in riskier behavior or negligence, knowing that any negative consequences will be covered by the protection.

________ Is the Phenomenon When One Party That Is Protected