One Solution to the Moral Hazard Problem Is

question 95

Multiple Choice

One solution to the moral hazard problem is:

• A)credible commitments.
• B)credible insurance.
• C)credible statements.
• D)credible actions.

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Definitions:

Organizations

Groups of individuals structured to achieve common goals or objectives, which can include businesses, government agencies, non-profits, and more.

Voluntary Non-Insurance

A decision by individuals or entities to not purchase insurance coverage for potential risks, relying instead on self-funding for losses.

Retirement Income

The funds or revenue an individual receives after retiring from employment, often from savings, pensions, or government programs.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.