Moral hazard is a problem that arises _____ the parties have entered into an agreement.
A)before
B)after
C)either before or after
D)Moral hazard does not relate to parties entering into an agreement.

Question

Quizplus · Accepted Answer

Moral hazard arises after the parties have entered into an agreement, as it refers to a situation where one party may take greater risks because they know the other party bears the cost of those risks.

Moral Hazard Is a Problem That Arises _____ the Parties