The Case Where People Purposely Act in a Careless Way

question 112

Multiple Choice

The case where people purposely act in a careless way, for example, driving recklessly because they are insured, is called

• A) asymmetric information.
• B) risk aversion.
• C) moral hazard.
• D) bounded rationality.
• E) thrill-seeking.

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability, leading to denial of opportunities or rights.

Ableism

Discrimination and social prejudice against people with disabilities based on the belief that typical abilities are superior.

Exclusive Clubs

Social or recreational organizations that restrict membership based on certain criteria, creating an environment of exclusivity.

Social Circles

Groups of people with whom one interacts and shares common interests or backgrounds; often influential in shaping individual behavior and opinions.