Asked by
Hasnat Mahajabin
on Dec 05, 2024Verified
Moral hazard occurs when individuals:
A) do not do what is in their own best interest.
B) know more about acceptable business behavior than other people do.
C) have an incentive to violate their morals.
D) know more about their actions than other people do.
Moral Hazard
A situation where one party in a transaction has the opportunity to take risks because they know they will not have to bear all the consequences.
Best Interest
A consideration that prioritizes the well-being or advantage of a person or group.
Acceptable Business Behavior
Practices within a business that are considered ethical and proper by societal and professional standards.
- Acquire knowledge about moral hazard and its role in shaping the actions of individuals and enterprises.
Verified Answer
BF
Learning Objectives
- Acquire knowledge about moral hazard and its role in shaping the actions of individuals and enterprises.