Moral Hazard Occurs When

question 8

Multiple Choice

Moral hazard occurs when:

• A)people with the highest risk are the most likely ones to buy insurance.
• B)insurance reduces a person's incentives to avoid or prevent certain risky events.
• C)the government refuses to provide social insurance.
• D)risk is spread across markets and time by speculators.
• E)none of the above.

Discuss the enforcement and defenses available to promisors and third parties in contracts.

Identify and explain the types of contracts or rights that are non-assignable and non-delegable.

Understand the distinctions and legal implications between bilateral contracts and unilateral contracts.

Differentiate between breach of contract and failure of condition.

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Definitions:

Unconscious Impulses

Unconscious impulses are desires or motivations that influence an individual's thoughts and actions without their conscious awareness.

Attributing

Attributing involves assigning a cause or reason to an event or behavior, often relating to explaining why something happened.

Defense Mechanism

Psychological strategies employed unconsciously to protect oneself from anxiety or social sanctions and to manage emotional conflicts.

Reaction Formation

A defense mechanism where an individual behaves in a way directly opposed to their actual feelings or desires, often to hide those feelings.