Which Is NOT an Example of Moral Hazard

question 23

Multiple Choice

Which is NOT an example of moral hazard

• A)people eat more at all-you-can-eat buffets
• B)loggers select the most profitable trees to harvest even when they are not paying per tree felled
• C)Drivers of heavier,safer cares are more likely to run stop signs
• D)workers on commission work harder than those paid an hourly wage

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Definitions:

Consumer-Driven Health Plan

A type of health insurance plan that places more control and decision-making in the hands of the consumer, typically involving high deductibles and health savings accounts.

Defined-Contribution Plan

A retirement plan where the amount of the employer's annual contribution is specified, and the future benefits fluctuate based on investment performance.

Profit-Sharing

A system where a portion of a company's profits is distributed to its employees, typically as a form of incentive or bonus.

Pension Benefit Guarantee Corporation

A U.S. government agency that protects the retirement incomes of American workers by insuring defined-benefit pension plans.