_______ occurs when consumers have less incentive to avoid risky behaviors.

Question

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Ex ante moral hazard refers to the situation where consumers have less incentive to avoid risky behavior before a transaction takes place, due to the knowledge that they will not bear the full cost of any negative consequences. This is in contrast to ex post moral hazard, which occurs after a transaction, when a party may change their behavior due to the presence of insurance or other safety nets. Adverse selection and asymmetric information refer to other issues related to incomplete or asymmetric information in a transaction.

_______ Occurs When Consumers Have Less Incentive to Avoid Risky