Moral Hazard Occurs Because People Act

question 227

Multiple Choice

Moral hazard occurs because people act

• A) in the interest of others at all time.
• B) in the best interest of society.
• C) in their own self-interest.
• D) like anarchists.

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Definitions:

Conditional Estate

A type of property ownership that is subject to certain conditions or requirements being met.

Condition

A provision in a contract or agreement that stipulates a specific event or action must occur before the contract is considered effective or a duty is triggered.

Appurtenant

is a legal term referring to rights or properties that are attached to and benefit a primary property, transferring with the title of that property from one owner to another.

Easement

A legal right to use another person's land for a specific limited purpose.