Which Is NOT an Example of Moral Hazard

question 18

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 rather than when paying per tree felled
• C)Drivers of heavier,safer cares are less likely to run stop signs
• D)workers on commission work harder than those paid an hourly wage

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Definitions:

Silent Acceptance

An implied agreement to a proposal demonstrated through an individual's actions rather than explicitly expressed consent.

Common Law

Law that is derived from court decisions over time, rather than statutes or written laws enacted by a legislative body.

Mirror Image

In contract law, the principle that an offer must be accepted exactly without modifications for a legally binding agreement to be formed.

Registered Letter

A mail service providing the sender with a mailing receipt, and sometimes includes insurance and tracking of delivery.