​An Example of Moral Hazard Is

question 17

Multiple Choice

​An example of moral hazard is

• A)​people drive less carefully in icy conditions with antilock brakes than without
• B)people drive as safely with more airbags as without
• C)football players avoid 'spearing' with their heads even with safer helmets
• D)​people read the medicine warnings as carefully when self-medicating as with a doctor's prescription

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Definitions:

Condition Precedent

A legal term describing a condition that must be fulfilled before a contract or agreement becomes effective or before a party is obligated to perform.

Harvard Medical School

A globally prestigious medical school located in Boston, Massachusetts, known for its research, teaching, and clinical care.

Illusory

Something that appears real or possible but is neither, often due to being deceptive or misleading.