An Example of Moral Hazard Is

question 21

Multiple Choice

An example of moral hazard is

• A)workers working diligently even though the boss is not looking
• B)health care insured forgoing their diet and exercise
• C)drivers of safer cars turning their phones off before driving
• D)borrowers investing their loan proceeds exactly as the bank requires

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Definitions:

Intellectual Stimulation

The influence or activity that encourages thinking, questioning, and innovation, often seen as a leadership quality that challenges the status quo.

Transformational Leaders

Leaders who inspire followers to exceed their own self-interests for the good of the organization and can effect significant change in both followers and the organization.

Question Assumptions

The critical thinking process of challenging and evaluating the taken-for-granted beliefs or principles underlying arguments or strategies.

New Perspectives

Fresh insights or different ways of viewing things that can lead to innovative solutions or changes in understanding.