Where people think that no one is watching, they will often shirk their responsibilities. This is known as
A) moral hazard.
B) conservative accounting.
C) adverse selection.
D) an inefficient marketplace.

Question

Quizplus · Accepted Answer

Moral hazard refers to the tendency of people to take more risks or engage in more reckless behavior when they are not being monitored or held accountable for their actions. When people think that no one is watching, they may be more likely to shirk their responsibilities or cut corners in order to save time or effort. This can lead to negative outcomes, such as lower quality work or increased risk of accidents or errors.

Where People Think That No One Is Watching, They Will