Which of the Following Is Not Recommended as a Preventive

question 288

Multiple Choice

Which of the following is not recommended as a preventive measure to prevent panic?

• A) Give people a routine to keep down anxieties.
• B) Don't emphasize discipline.
• C) Provide full and appropriate information to combat ignorance.
• D) Control rumors.
• E) None of the above.

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Definitions:

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, without government intervention.

Moral-Hazard Problem

A situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting costs.

Monitoring

The process of systematically observing, checking, and recording activities or data to ensure proper compliance or performance.

Moral Hazard Problem

The risk that one party to a transaction takes on more risk because it knows that the other party bears the consequences of those risks.