Moral Hazard Is

question 75

Multiple Choice

Moral hazard is:

• A)the tendency for people to behave in a riskier way when they're insured.
• B)when individuals make exchanges in the grey market.
• C)when one party acts in a way that is ethically outside the norm in a market exchange.
• D)when both parties act in a way that is ethically outside the norm in a market exchange.

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Definitions:

Economic Growth

The increase in the production of goods and services in an economy over a period of time.

Microeconomics

Microeconomics is the branch of economics that focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders.

Rate Of Inflation

The pace at which the general level of prices for goods and services is rising, eroding purchasing power.

Macroeconomics

The branch of economics that studies overall economic factors, such as national productivity, total national income, and the overall levels of prices and employment.