Moral Hazard Is

question 33

Multiple Choice

Moral hazard is:

• A) when individuals make exchanges in the grey market.
• B) the tendency for people to behave in a riskier way when they're insured.
• 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:

Process Theories

Theories that focus on understanding how specific processes contribute to the motivation, behavior, and performance of individuals.

Maslow's Need Hierarchy

A theory in psychology that categorizes human needs into a hierarchical structure, from basic physiological needs to self-actualization.

McClelland's Theory

A psychological theory that categorizes human motivation into three types: the need for achievement, the need for affiliation, and the need for power.

Autonomy Support

Providing support for individuals to make their own choices and take initiative in their actions.