Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 22 - Part VII - Frontiers of Microeconomics - Quick Check Multiple Choice - Page 478: 2

Answer

a. moral hazard

Work Step by Step

Moral hazard is the lack of incentive to protect oneself against risks since there is protection against consequences. One particular example is being more lax with one's health concerns because insurance will cover it.
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