In the Market for Insurance, the Moral Hazard Problem Leads

question 51

Multiple Choice

In the market for insurance, the moral hazard problem leads:

• A)​those most likely to collect on insurance to buy it.
• B)​those who buy insurance to take fewer precautions to avoid the insured risk.
• C)​those with less insurance to take on more risk.
• D)​to none of the above.

---

Definitions:

Phone Call

A voice conversation between two or more people transmitted over a distance using telecommunication devices.

Low Grade

A term used to describe something of below-average quality or rank, often in the context of academic grades or medical conditions.

Dispositional Attributions

The tendency to attribute people's behaviors to their inherent personal characteristics, rather than to situational factors.

Situational Attributions

The process of assigning the cause of a behavior or action to external circumstances or events, rather than to personal characteristics or dispositions.