Recall the Application about how having car insurance affects driving behavior to answer the following
question(s).
-Recall the Application. The theory of moral hazard suggests that uninsured drivers drive less carefully than insured drivers.

Question

Quizplus · Accepted Answer

The theory of moral hazard suggests that insured drivers may drive less carefully because they know they are protected by insurance, while uninsured drivers might drive more cautiously because they bear the full risk of their actions.

Recall the Application About How Having Car Insurance Affects Driving