Moral Hazard Is a Problem That Arises

question 65

Multiple Choice

Moral hazard is a problem that arises:

• A) before the parties have entered into an agreement.
• B) after the parties have voluntarily entered into an agreement.
• C) either before or after the parties have entered into an agreement.
• D) rarely in any market.

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Definitions:

Variance

A measure of how much a set of numbers differs from each other or a statistical permission to deviate from a standard in zoning laws.

Silence

The absence of any sound or noise.

Acceptance

Within the domain of contract law, the process of consenting to an offer's conditions, thus establishing a legally enforceable agreement.

Reasonable Means

Actions or methods that are considered fair, appropriate, and sensible according to the average person's judgment under specific circumstances.