What is moral hazard?

Social Studies

1 answer:

motikmotik3 years ago

6 0

Answer:

b. It refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off.

Explanation:

Moral hazard -

It occurs when the person increases their exposure to risk in the case , when the other person bears the cost of the risks .

It can occur when the action of one of the party changes due to the detriment of the other after the financial transaction is done .

hence ,

The correct answer for Moral Hazard is ( b ) .

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