Explain the Concept of Moral Hazard. Give an Example

question 119

Essay

Explain the concept of moral hazard. Give an example.

---

Definitions:

Environmental Factors

External elements like climate, pollution, and social settings that can influence an individual's health, behavior, and development.

Prototypes

Original or first examples that serve as a model or benchmark for subsequent versions in product development, design, or conceptualization.

Exemplars

Instances or examples that are typical of a category or group, used in cognitive psychology to understand how people categorize information.

Language Development

The process by which children come to understand and communicate language during early childhood.