Traditionally, the federal government provides disaster relief funds to flood victims so that they can rebuild their homes after a major flood
However, the government has recently denied requests to rebuild some homes that were situated in flood-prone areas. This action represents an attempt to ________ the moral hazard problem associated with building private homes in risky areas. A) enhance
B) mitigate
C) legalize
D) support
B
You might also like to view...
Which of the following statements are CORRECT?
I. The average economic growth rate in real GDP per person in the United States over the last century was 5 percent per year II. The United States has the highest economic growth rate of any nation. A. II only B. neither I nor II C. both I and II D. I only
In its macroeconomic equilibrium, the economy can be producing at i. below full employment. ii. full employment. iii. above full employment
A) i only B) ii only C) iii only D) i or ii E) i, ii, or iii