An Example of Moral Hazard Is​

question 12

Multiple Choice

An example of moral hazard is​

• A)​people drive as carefully in icy conditions with antilock brakes as 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 fail to read the medicine warnings more often when self-medicating versus with a doctor's prescription         

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Definitions:

Social Dilemma

A situation in which individual interests conflict with collective well-being, making cooperation difficult to achieve.

Pesticides

Substances or mixtures used to control, repel, or kill pests; includes herbicides, insecticides, and fungicides.

Resource Dilemmas

Situations in which individuals or groups must decide how to share scarce resources, often leading to conflicts of interest and requiring cooperation for sustainable management.

Cognitive Capacity

The total amount of information that the memory can retain or the brain can manage at any one time.