Which of the Following Is Not True About Moral Hazard

question 129

Multiple Choice

Which of the following is not true about moral hazard?

• A)It increases the difficulty of operating private insurance markets.
• B)It increases the difficulty of operating public insurance markets.
• C)It is the tendency of people to change behavior when insured.
• D)It is the tendency of people with higher risks to buy more insurance.

---

Definitions:

Planning

The process of making plans for something, including setting goals and determining the means to achieve them.

Organizing

The act of arranging elements following one or multiple logics with the aim to reach a specific goal or manage a system of complexity.

Leading

The process of influencing others towards the achievement of goals; in a business context, it involves motivating employees and guiding the organization in a clear direction.

Employees

Individuals who are hired by a business or organization to perform specific tasks in exchange for compensation.