The Problem of Moral Hazard Arises Because

question 107

Multiple Choice

The problem of moral hazard arises because

• A)wisdom learned in one era does not easily translate to other time periods.
• B)value judgments about what is good or bad are inherently subjective.
• C)representatives, once selected, cannot easily be monitored.
• D)candidates are reluctant to reveal negative characteristics about themselves.
• E)we never know what elected officials really want to do when elected.

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Definitions:

Implied Warranty

An assurance, not explicitly stated, that a product meets certain quality and reliability standards.

Remedy

Legal means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Tenancy At Sufferance

The leasehold interest that occurs when a tenant remains in possession of property after the expiration of a lease.

Holds Over

A term describing a tenant who remains in possession of leased property after the expiration of the lease term without the landlord's consent.