Moral hazard refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off.

Name: Moral hazard refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off.
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Question

Quizplus · Accepted Answer

Moral hazard occurs when one party in a transaction takes on more risk because they know the other party bears the consequences of that risk, often due to asymmetric information.

Moral Hazard Refers to the Actions People Take After They