The lack of incentive to guard against risk where one is protected from it is known as:

Question

Quizplus · Accepted Answer

Moral hazard refers to the lack of incentive to guard against risk where one is protected from it. This can occur when individuals or institutions are insured or bailed out, allowing them to take greater risks without bearing the full consequences of their actions. A classic example is the "too big to fail" phenomenon, where large financial institutions can take on risky investments knowing that the government will bail them out if they get into trouble.

The Lack of Incentive to Guard Against Risk Where One