Which of the Following Is an Example of Moral Hazard

question 4

Multiple Choice

Which of the following is an example of moral hazard?

• A) a person who drives more recklessly after obtaining automobile insurance
• B) a person who engages in unrisky behavior after enrolling in his firm's health insurance plan
• C) a driver who reduces his level of insurance coverage after his premiums rise
• D) all of the above

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Definitions:

Analogies

Comparisons between two things, typically for the purpose of explanation or clarification.

Multicultural Worker

One who can work effectively with people of different cultures.

Ethnic Cuisine

Ethnic Cuisine pertains to the foods and culinary practices associated with a particular cultural or national heritage.

Organizational Diversity

The inclusion and representation of different demographic backgrounds, cultures, perspectives, and ideas within a workplace.