After people buy insurance, they are more likely to build a beach house out of wood framing rather than concrete block.This is an example of

Name: After people buy insurance, they are more likely to build a beach house out of wood framing rather than concrete block.This is an example of
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Question

Quizplus · Accepted Answer

This is an example of moral hazard, as having insurance may lead people to take riskier actions (such as building a beach house out of wood framing) since they feel protected from financial loss.

After People Buy Insurance, They Are More Likely to Build