Which of the Following Is an Example of Moral Hazard

question 101

Multiple Choice

Which of the following is an example of moral hazard?

• A) When a family's belongings are protected against theft and they take special care to look after the house.
• B) An individual buys a new auto insurance policy which includes a special payment if the car skids on the ice and the person then begins driving recklessly on ice.
• C) When a country expects assistance in the event of a currency crisis and therefore takes special care to avoid such a crisis.
• D) When decision-makers expect special assistance in the event of an unfavorable outcome and their behavior changes in such a way to avoid that outcome entirely.
• E) When a person with health insurance takes great care not to catch a serious cold.

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The right to express any opinions without censorship or restraint, protected under the First Amendment of the U.S. Constitution.

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Services that involve promoting, marketing, and selling products or services through various media channels, including online platforms, television, radio, and print.

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