Moral Hazard Is Said to Exist When One Party to a Transaction

question 25

Multiple Choice

Moral hazard is said to exist when one party to a transaction

• A)is not able to take advantage of the other party.
• B)has the incentive to,and is able to,shift costs to another party in the transaction.
• C)is subject to a hostile corporate takeover.
• D)purchases insurance because they know they are involved in risky activities.
• E)has no morals.

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Definitions:

Ileostomy

An ileostomy is a surgical procedure in which a portion of the ileum is diverted to an artificial opening in the abdominal wall, allowing waste to bypass the colon.

Stool Incontinence

Another term for fecal incontinence, describing a loss of control over bowel movements leading to involuntary release of stool.

Black Stool

Stool that is dark in color, often an indicator of gastrointestinal bleeding or the consumption of certain substances or foods.

Fecal Occult Test

A screening test used to detect hidden blood in the stool, which can be an early sign of colorectal cancer or other digestive system diseases.