There is evidence of moral hazard if,after a workers' compensation program is introduced:

Question

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Moral hazard refers to the concept that individuals may take more risks because they are insulated from the consequences of their actions. In the case of workers' compensation programs, employees may be more likely to file claims, including those that are difficult to prove, because they are aware of the protection provided by the program. Therefore, if there is an increase in the number of difficult-to-prove claims, it suggests the presence of moral hazard.

There Is Evidence of Moral Hazard If,after a Workers' Compensation