Answer:
B. Representative
Explanation:
Representative Democracy, meaning "rule of the people", is a system of government in which the citizens exercise power directly or elect representatives from among themselves to form a governing body, such as a parliament. Democracy is sometimes referred to as "rule of the majority"
This behavior is an example of Moral hazard
.
Option A
<u>Explanation</u>:
Moral hazard is a behavior occurs when a person increases his/her exposure to risk when insured or have a financial assistance. In this situation ''person takes more risks" because someone else is there to bear cost of risks. In the above situation, Martha used to spend less before but when she got the scholarship she started spending more as having a financial security of scholarship. Other options - pecuniary externality, the paradox of thrif and the free-rider problem are incorrect as do not have any relevance with the case of Martha.
The basic outline of the purpose and beliefs that the constitution stands for.