Christine works as a receptionist in an office.While at work,she is not supposed to access social networking Web sites.However,as her browsing activities are not monitored,she often uses the office network to access these Web sites.This is an example of ________.
A) adverse selection
B) moral hazard
C) a positive externality
D) the free-rider problem

Question

Quizplus · Accepted Answer

This is an example of moral hazard, as Christine is taking advantage of the lack of monitoring to behave in a way that goes against the rules or expectations of her job.

Christine Works as a Receptionist in an Office