Which of the Following Best Describes a Situation of Moral

question 181

Multiple Choice

Which of the following best describes a situation of moral hazard?

• A)Sicker people are more likely to buy health insurance.
• B)Prospective used-car buyers have less information about a particular car than its seller does.
• C)Drivers with collision insurance drive more recklessly.
• D)Drivers with collision insurance wear seatbelts less often.

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Definitions:

Reconstruction Acts

Legislation passed after the Civil War that outlined the process for re-admitting Southern states into the Union, while also establishing conditions for suffrage and civil rights for formerly enslaved people.

Civil Rights Act

A landmark piece of legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin.

Congress

A national legislative body, particularly in the United States, composed of the Senate and the House of Representatives.