Options:
A.And the example with Brad illustrate adverse selection.
B.and the example with Brad illustrate moral hazard.
C. illustrates adverse selection; the example with Brad illustrates moral hazard.
D.illustrates moral hazard; the example with Brad illustrates adverse selection.
Answer:C. Illustrates adverse selection; the example with Brad illustrates moral hazard.
Explanation:
A Moral hazard is a term that is connected with Financial risks, a moral hazard has been described as the risk exposure especially of a financial nature caused by the activities and actions of another partner.
In insurance, it is also known as when a person increases their chances of exposure to risk because the burden arising from the risk is paid for or carried by another partner which may be an insurance company.
<h2><u>Self-serving bias</u> tends to be caused by a desire to protect an individual’s self-esteem.
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Explanation:
- Self-serving bias is a conceptual perception where a person attributes oneself for his/her own successes to his/her own efforts, hard work, intelligence etc., but blame others or other situations for any failures.
- It acts as a defensive mechanism to protect an individual’s self-esteem.
- This makes a person to favor oneself more, attribute only positive events to self, boost self confidence, feel proud about self; at the same time, blaming others or luck or other situations for failures is simply done to protect one’s self-esteem.
- This behavior will make a person to move away from one’s responsibilities or cannot accept mistakes or failures and detrimental to one’s personal behavior and relationships as well as any learning outcome.
- For eg., a student praising oneself for his/her success in an exam but blaming the teacher or the question paper for failure in another exam
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Answer:
The key to balance between fun and responsibility is realizing that you are held accountable for your actions and mistakes.
Explanation:
Dear 12 grade learner, you need to surround yourself with the right people and use common sense. You are responsible for your mistakes along with consequences.
What is freedom:
- Is the ability to set your schedule
- To decide what you want to do
- To make decisions
What is Responsibility:
- Being held accountable for your actions
- Attempt to balance between one force against the other.
- The state or fact of having a duty to deal with.
Freedom and responsibility aren't given, they are taken.
