Which of the Following Best Describes a Situation of Moral

question 181

Multiple Choice

Which of the following best describes a situation of moral hazard?

• A)Sicker people are more likely to buy health insurance.
• B)Prospective used-car buyers have less information about a particular car than its seller does.
• C)Drivers with collision insurance drive more recklessly.
• D)Drivers with collision insurance wear seatbelts less often.

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Definitions:

Social Profile

An overview of an individual's social characteristics, typically including such information as age, education, employment, and social habits, often used in the context of social media.

Illegal Drug Users

Individuals who consume substances that are prohibited by law.

Safe Needle Use

Practices that reduce health risks associated with needle usage, such as using new needles for injections and properly disposing of them.

AIDS Virus

The virus responsible for causing Acquired Immune Deficiency Syndrome (AIDS), known as HIV (Human Immunodeficiency Virus).