According to Wikipedia.com, Former Philippines president Marcos authorized construction of a new nuclear power plant on a known earthquake fault line in the providence of Bataan in the Philippines.The projected $500 million power plant was to be constructed by Westinghouse.The project was backed by EXIR - a U.S.government backed Export Credit Agency - which guaranteed Philippine loan to Westinghouse.The actual project cost amounted to $2.3 billion.Westinghouse was paid despite the fact that the nuclear plant never went online since it was built on a fault line.This illustrates an example of

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This scenario illustrates moral hazard, where the U.S. government-backed Export Credit Agency guaranteed the loan to Westinghouse despite the power plant being built on a known earthquake fault line, indicating a lack of protection against risk. This allowed Westinghouse to be paid the full amount despite the project not going online, leading to a greater incentive for risky behavior in the future.