Which of the Following Is an Example of Moral Hazard

question 93

Multiple Choice

Which of the following is an example of moral hazard?

• A)​There are likely more cars of low quality than of high quality offered for sale without warranties in the used car market.
• B)​An individual who eats well and exercises regularly chooses not to purchase health insurance.
• C)​An individual drives less cautiously after obtaining automobile insurance.
• D)​A car salesman offers a full warranty on a used car for 90 days.

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Definitions:

Brainwave Activity

The patterns of neuronal electrical impulses in the brain that are detectable with an electroencephalogram (EEG), related to different states of consciousness, sleep, and cognition.

Psychotic Features

Symptoms associated with psychosis, including delusions, hallucinations, disorganized thinking, and lack of insight.

Postpartum Depression (PPD)

Postpartum Depression is a complex mix of physical, emotional, and behavioral changes that happen in some women after giving birth, characterized by depression and anxiety.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.