When people behave recklessly because they know they will be saved if things go wrong,it is known as a(n)

Question

Quizplus · Accepted Answer

Moral hazard refers to the behavior where people take risks because they know they will be saved or bailed out if things go wrong. This is often seen in situations where the risk-taker is not fully responsible for the consequences of their actions, such as when an individual or institution is insured against losses.

When People Behave Recklessly Because They Know They Will Be