Which of the Following Is an Example of Moral Hazard

question 2

Multiple Choice

Which of the following is an example of moral hazard?

• A) I hire you to work in my garden for a fixed fee, and you work hard all day.
• B) I hire you to work at an hourly rate and you work as slowly as possible.
• C) You apply for the job only because I pay a fixed wage per day, no matter how much or little you do.
• D) You agree to be paid by the weed to work in my garden, and then you work hard.
• E) You agree to be paid by the weed to work in my garden, and then you don't work hard.

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Definitions:

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another in the brain and nervous system.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, also involved in regulating mood, appetite, and sleep among other physiological processes.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, playing a key role in attention and responding actions in the brain.

Major Depressive Disorder

A more severe form of depression characterized by persistent and intense feelings of sadness and hopelessness along with other symptoms.