Which of the Following Is an Application of the Moral-Hazard

question 14

Multiple Choice

Which of the following is an application of the moral-hazard problem?

• A)a person buying insurance after a cancer diagnosis.
• B)an salesperson who is not paid on commission being rude to customers.
• C)coffee hounds buying the menu item meant for lower-demand consumers.
• D)only inexperienced workers applying for a managerial job advertised with a relatively low salary.

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Definitions:

Superstitiously

In a manner that is based on or shows a belief in superstitions, which are beliefs or practices resulting from ignorance, fear of the unknown, trust in magic or chance, or a false conception of causation.

Stimulus Generalization

The tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned.

Instinctive Drift

During operant learning, the tendency for an organism to revert to instinctive behavior.

Instinctive Drift

The tendency of an animal to revert to instinctual behaviors that interfere with learned responses.