Which of the Following Would Be an Example of a Moral

question 191

Multiple Choice

Which of the following would be an example of a moral hazard problem?

• A) a person in poor health who purchases life insurance
• B) a person who is taxed on the purchase of a carton of cigarettes
• C) a person who purchases auto insurance and then drives more recklessly
• D) a person who receives a subsidy from the Federal government to insulate a home

---

Definitions:

Beta-Endorphins

Natural peptides produced by the body that act as neurotransmitters to reduce pain and promote feelings of well-being.

Aerobic Exercise

Physical activity that improves cardiovascular health by increasing the heart rate and oxygen intake for a prolonged period.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Body Mass Index (BMI)

A measure of body fat based on height and weight that applies to adult men and women.