What is moral hazard?
What will be an ideal response?
Moral hazard is a tendency for people to act in risky and reckless ways if they know that others will bear the burden of most or all of any bad consequences.
Economics
You might also like to view...
If everyone's utility is given equal weight and a change in resource allocation results in one person's gain exceeding another person's loss, we can say that the new allocation
A) is Pareto superior to the original one. B) increases social welfare. C) decreases social welfare. D) is efficient.
Economics
The marginal propensity to save is always larger than the marginal propensity to consume
Indicate whether the statement is true or false
Economics