A community teaches children that hard work and doing your best at tasks are virtues. This is an example of
A)reducing moral hazard through social norms.
B)resolving risk aversion through social norms.
C)reducing moral hazard through complements to actions you want.
D)resolving risk aversion through complements to actions you want.

Question

Quizplus · Accepted Answer

This scenario involves reducing moral hazard through social norms because the community is encouraging behaviors that align with the desired outcome (hard work and doing your best), and discouraging behaviors that do not align with the desired outcome. By instilling these values in children, the community is reducing the likelihood that individuals will engage in risky behavior or shirk their responsibilities.

A Community Teaches Children That Hard Work and Doing Your