​Which Is NOT an Example of Moral Hazard

question 77

Multiple Choice

​Which is NOT an example of moral hazard

• A)​people eat more at all-you-can-eat buffets
• B)loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled
• C)Drivers of heavier,safer cares are more likely to run stop signs
• D)​workers paid an hourly wage work harder than those on commission

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Definitions:

Unanimous Vote

A vote in which all members of a given group or assembly agree on a single decision or outcome.

Majority Vote

A voting outcome where more than half of the votes cast decide an issue or election.

Common Stock

Corporate stock that does not convey any preferences to its holders.

Corporation

A legal entity formed by issuing stock to investors, who are the owners of the corporation.