An example of moral hazard is
A)workers working diligently even though the boss is not looking
B)health care insured dieting and exercising
C)drivers of safer cars texting on their phones while driving
D)borrowers investing their loan proceeds exactly as the bank requires

Question

Quizplus · Accepted Answer

The drivers of safer cars may engage in risky behavior, such as texting while driving, assuming that their cars will protect them from accidents. This is an example of moral hazard as the safer car has encouraged the driver to take on more risk.

An Example of Moral Hazard Is