The Problem of Moral Hazard Arises Because _____

question 3

Multiple Choice

The problem of moral hazard arises because _____.

• A)individuals receive insurance through their employer,who has different incentives
• B)individuals with insurance have no incentive to avoid insured expenditures
• C)some individuals have religious objections to purchasing insurance
• D)some individuals are immoral

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Definitions:

Sex Discrimination

Unfair treatment of individuals based on their gender or sex.

Lesbian, Gay, Bisexual

Terms that describe sexual orientations: lesbian for women attracted to women, gay for men attracted to men, and bisexual for individuals attracted to both men and women.

Resource Acquisition

The process by which firms obtain necessary inputs and resources to carry out their operations.

Productivity

The measure of how efficiently production inputs, such as labor and capital, are converted into outputs, or goods and services.