Moral Hazard

question 25

Multiple Choice

Moral hazard:

• A)occurs when incentives are distorted because an individual knows more about his or her own actions than other people do.
• B)is a term used to describe the bonuses paid for particularly hazardous jobs (such as firefighting).
• C)is a term used synonymously with "value judgment."
• D)refers to the questionable morality of price gouging in hazardous times (e.g., in the presence of famines, floods, etc.).

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Definitions:

Acid Chlorides

Reactive derivatives of carboxylic acids where the hydroxyl group is replaced with a chlorine atom, used in organic synthesis.

Nitriles

Organic compounds containing the cyano group (-C≡N), which consists of a carbon atom triple-bonded to a nitrogen atom.

Bromo

A prefix in organic chemistry indicating the presence of a bromine atom in the compound.

Methylbutanoyl

An organic group derived from butanoic acid, often represented in molecules like esters or amides.