Moral hazard describes a scenario in which:
A. people behave in a riskier fashion because they don't understand the consequences of their actions.
B. behaving morally produces a negative consequence.
C. people behave more risky or renege on agreements when they do not face the full consequences of their actions
D. when people behave morally they put themselves in a hazardous situation.
Answer: C
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If the public debt increased by the same amount each year during the past three years, then
A) the U.S. government must have operated with the same budget surpluses during the past three years. B) the U.S. government must have experienced budget surpluses that increased by the same amount each of the past three years. C) the U.S. Treasury must have issued securities to fund a flow of government spending that exceeded a flow of tax revenues by the same amount during each of the past three years. D) during each of the past three years, the U.S. Treasury must have bought back the same amount of securities that had previously been issued to cover deficits experienced more than three years ago.
From 1975 to 2008, which of the following countries experienced greater wage increases than the U.S.?
a. Japan b. South Korea c. Taiwan d. all of the above
Firms share technology with rivals,
A. in order to better compete with their rivals. B. in order to help out when their rivals are in trouble. C. to share the substantial risks of innovation. D. because they are required to by law. E. in order to pass false information to their rivals in order to drive them out of business.
The ________ decides monetary policy.
A. chairperson of the Federal Reserve Board B. President C. Congress D. Federal Open Market Committee