Moral Hazard Is Created When the Government __________

question 39

Multiple Choice

Moral hazard is created when the government __________.

• A)lowers taxes hoping to increase tax revenue
• B)uses deficit spending to stimulate the economy
• C)assumes the financial risks of the private sector
• D)provides payments that reduce incentives to work

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Definitions:

Methylene

A group consisting of one carbon atom bonded to two hydrogen atoms (-CH2-), commonly found as part of organic molecules.

Cycloalkanes

Saturated hydrocarbons consisting of carbon atoms arranged in a ring, with general formula CnH2n for monocyclic cycloalkanes.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.

Transcends Time

A characteristic or quality that goes beyond or exists independently of time.