Which of the Following Is an Example of Moral Hazard

question 116

Multiple Choice

Which of the following is an example of moral hazard?

• A) The healthiest people buy life insurance.
• B) The sickest people buy health insurance.
• C) The person with health insurance rides a motorcycle without wearing a helmet.
• D) The person with life insurance exercises daily and eats healthy foods.

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Definitions:

Urgent Social Need

Critical and immediate requirements within a society that necessitate collective action or policy intervention.

Technology Advances

The process of developing and implementing new tools, systems, or methods of doing things that improve efficiency, effectiveness, or capabilities.

Greenhouse Effect

The warming of Earth's surface and atmosphere caused by the trapping of the sun's heat by greenhouse gases, such as carbon dioxide and methane.