_____ arises when people behave recklessly because they know they will be saved if things go wrong.
A) Systemic risk
B) Moral hazard
C) Ethical dilemma
D) Tragedy of the commons
E) Risk compensation

Question

Quizplus · Accepted Answer

Moral hazard is the situation where individuals or institutions take on more risk believing that they will not bear the full consequences if things go wrong because they will be saved. This can lead to reckless behavior and a disregard for prudence or caution.

_____ Arises When People Behave Recklessly Because They Know They