Multiple Choice
-Moral hazard is the term used to describe the situation in which:
A) a consumer may buy a low-quality product.
B) consumers receive a lower price because of a mistake on the part of the clerk.
C) a consumer is being compensated for a defective product.
D) people may change their behavior after they have signed a contract or agreed to a specified behavior.
E) people want to change their behavior after they have signed a contract or agreed to a specified behavior but are unable to do so.
Correct Answer:
Verified
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