Sam decides to join the Gigantic State University's rugby team when he learns that his health insurance will pay for any subsequent injury. This illustrates

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The fact that Sam is more likely to engage in risky behavior (playing rugby) because he is insulated from the financial consequences of his actions (due to health insurance covering any injuries) is an example of the moral hazard problem. This is a situation where one party takes risks because the costs of those risks will be borne by another party.

Sam Decides to Join the Gigantic State University's Rugby Team