Moral Hazard Is a Problem That Arises When

question 95

Multiple Choice

Moral hazard is a problem that arises when:

• A)people are required to bear the negative consequences of their actions.
• B)people don't have to bear the negative consequences of their actions.
• C)people benefit from the negative actions of others.
• D)government discourages companies from taking risks.

---

Definitions:

Approach-Approach

A conflict situation where a person must choose between two desirable options.

Inner Conflict

Conflict within an individual; it might involve values, loyalties, or priorities; the pressure you feel when you are forced to make a choice.

Hardy Personality

A resilient personality type, characterized by the ability to meet challenges, a sense of commitment, and a feeling of being in control of life.

Control

The power to influence or direct people's behavior or the course of events.