What is moral hazard?
a. It refers to the actions people take before they enter into a transaction so as to mislead the other party to the transaction.
b. It refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off.
c. It refers to the private, self-interested actions that people pursue, which when taken collectively leads to a loss in economic surplus.
d. It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is moral hazard? a. It refers to the actions people take before they enter into a transaction so as to mislead the other party to the ...” in 📗 Social Studies if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which situation is the best example of opportunity cost? A country chooses to produce bananas instead of wheat. A country chooses to invest in manufacturing and agriculture. A country chooses to specialize in producing paper products.
Answers (2)
Play in board games like Dungeons and Dragons is constricted within the context of the real world. a. True b. False
Answers (1)
What made the initial US system of government a confederacy?
Answers (1)
The Boston Massacre was the first instance of extreme violence that took place, and took the colonists one step closer to A) Freedom B) Resolution C) Revolution
Answers (2)
How does the Constitution ensure the states are protected from federal abuse?
Answers (1)
New Questions in Social Studies
What amendment gives citizens the right to vote regardless of race?
Answers (1)
The actual matter density of the universe, accounting for all of the luminous matter and all of the dark matter known to exist in galaxies and clusters, is what fraction of the critical density?
Answers (1)
Which statement best describes a mixed market economy? Consumer intervention and economic choices is strictly forbidden. The government determines economic choices and makes most of the decisions.
Answers (2)
This editorial cartoon from 1933 is of the opinion that
Answers (2)
Brian is a psychologist. he has his clients sign contracts and gives them "homework," which they must complete and then report the results of these actions to him at the next session. brian's type of therapy would best be described as
Answers (1)