Which of the Following Are Not Responsible for Cleanup Costs

question 12

Multiple Choice

Which of the following are not responsible for cleanup costs of hazardous waste?

• A) Innocent purchasers
• B) Former owners before the contamination
• C) Lenders who foreclose and become owners
• D) All of the above
• E) None of the above

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Definitions:

Moral Hazard

A situation in insurance and economics where one party is more likely to take risks because they do not bear the full consequences of their actions, often due to asymmetric information.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Benefit

An advantage or positive outcome gained from something, often used in the context of employment perks or features of a product or service.

Moral Hazard

Moral hazard occurs when one party in a transaction takes on more risk because they know that someone else will bear the cost of those risks.