Moral hazard is the idea that when people are insured against the consequences of a risk, they will engage in risker behavior.

Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire grou

A) irrational behavior. B) free riding. C) Pareto inefficiency. D) disequilibrium.

If a firm cannot earn profits in the short run, it will shut down

Indicate whether the statement is true or false