Which of the Following Is an Example of Moral Hazard

question 86

Multiple Choice

Which of the following is an example of moral hazard?

• A)A college student drinking alcohol and partying instead of studying.
• B)A homeowner with fire insurance not clearing bush around their property.
• C)A chronically sick person using hospital services.
• D)A chronically sick person buying more health insurance than average.

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Definitions:

Indirect Approach

A method of dealing with a situation or problem by not addressing it directly.

Supervisory Role

A position of authority overseeing the work of others, ensuring tasks are completed appropriately and efficiently.

Requests

Expressions or acts of asking for something, typically in a formal or polite manner.

Positive Words

Terms and phrases that invoke constructive, optimistic, and encouraging connotations, used to uplift and motivate.