The so-called moral hazard problem refers to one's tendency to:

Question

Quizplus · Accepted Answer

The moral hazard problem refers to the tendency of individuals or entities to take on greater risk when they are partially insured against losses. This is because they may feel insulated from the full consequences of their actions and therefore more willing to take risks. For example, banks that are insured by the government may take on greater risks than they would otherwise, because they know that the government will step in to bail them out if things go wrong.

The So-Called Moral Hazard Problem Refers to One's Tendency To