Moral Hazard Occurs When

question 22

Multiple Choice

Moral hazard occurs when:

• A)individuals do not do what is in their own best interest.
• B)an individual knows more about the way things are than other people do.
• C)an individual has an incentive to violate his or her morals.
• D)an individual knows more about his or her actions than other people do.

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Definitions:

Global Empathy

The capacity to understand and share the feelings of people from diverse cultures and backgrounds across the world.

Egocentric Empathy

The limited ability to understand another's perspective, assuming others feel the same as oneself.

Role-Taking

The process of mentally assuming the perspective of another person to understand their thoughts, feelings, or behaviors.

Decentration

The cognitive ability to pull away from focusing on just one feature of an object in order to consider multiple features.