The concept of ________ is defined by instituting a system of incentives in which rewards are privatized and risks are socialized.
A)financial privatization
B)moral hazard
C)invisible hand
D)global capitalism

Question

Quizplus · Accepted Answer

The concept of moral hazard is defined by instituting a system of incentives in which rewards are privatized and risks are socialized. This means that individuals or institutions are incentivized to take risks because they know that they will benefit from the potential rewards, but will not bear the full cost of the risks if things go wrong. This can lead to reckless behavior and can have negative consequences for society as a whole.

The Concept of ________ Is Defined by Instituting a System