​An Example of Moral Hazard Is

question 79

Multiple Choice

​An example of moral hazard is

• A)​workers working diligently even though the boss is not looking
• B)health care insured employees forgoing their diet and exercise
• C)drivers of safer cars turning their phones off before driving
• D)​borrowers investing their loan proceeds exactly as the bank requires

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Definitions:

Cause And Effect

A relationship between two phenomena where one event (the cause) directly results in another event (the effect).

Prepositional Phrases

Groups of words consisting of a preposition and its object, used to modify nouns, verbs, or adjectives.

Obey

To obey the instructions or orders issued by a person in charge.

Prepositional Phrases

Groups of words in a sentence made up of a preposition and its object, functioning as modifiers or complements.