Moral Hazard Is More Likely to Arise When

question 278

Multiple Choice

Moral hazard is more likely to arise when

• A) one side of an economic relationship cannot observe the behavior of those on the other side.
• B) adverse selection is present.
• C) insurance policies have high deductibles.
• D) people are uninsured.

---

Definitions:

Sample Size

The number of observations or data points that are included in a statistical sample.

Null Hypothesis

A default statement or position that indicates no effect, difference, or relationship between two measured phenomena, subject to testing.

Detection Devices

Tools or instruments used to discover or identify the presence of something, usually with specific parameters.

Tooth Decay

A dental condition characterized by the destruction of enamel, dentin, and/or cementum due to acid production resulting from bacterial fermentation of food debris on tooth surfaces.