​An Example of Moral Hazard Is

question 18

Multiple Choice

​An example of moral hazard is

• A)​workers shirking when the boss is not looking
• B)health care insured workers dieting and exercising
• 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:

Welfare State

The welfare state is a concept of government in which the state plays a key role in protecting and promoting the economic and social well-being of its citizens, through measures such as public services, pensions, and health care.

New Social Movement Theory

A sociological theory that explains the emergence, dynamics, and impact of social movements that emerged from the 1960s onwards, focusing on identity, culture, and decentralized organizational structures.

Solidarity Theory

A sociological perspective emphasizing the unity or agreement of feeling or action, especially among individuals with a common interest; mutual support within a group.

Relative Deprivation Theory

A sociological theory that posits an individual or group's perception of disadvantage in comparison to others fuels social discontent and movements for change.