Which of the Following Is (Are) Examples of Moral Hazard

question 73

Multiple Choice

Which of the following is (are) examples of moral hazard?
I. An unemployed worker reduced his effort to find a job after he became eligible for unemployment insurance.
II. Banks make exceptionally risky investments because they expect government bailouts if their investments fail.
III. After a university made the morning-after pill available on campus, more students became sexually promiscuous.

• A) I, II, and III
• B) I
• C) II
• D) I and II

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Definitions:

Scroll Form

A method of displaying documents or artworks on a roll of parchment, paper, or fabric, originating in ancient times and used across various cultures.

Rotulus

A type of scroll or roll of parchment or paper used in ancient and medieval times for documents, letters, and literary works.

Codex

An ancient book constructed of a number of sheets of paper, vellum, papyrus, or similar materials, with hand-written content.

Clerestory Windows

Windows located high above eye level, typically used to admit light and air into a room or building, often seen in churches and ancient architecture.