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erma4kov [3.2K]
3 years ago
14

The basic idea behind moral hazard is that ________.

Business
1 answer:
Kobotan [32]3 years ago
3 0

Answer: people tend to take more risks if they do not have to bear the costs of their behavior

Explanation:

Moral hazard is a form of reckless behavior by an individual who doesn't directly bear the cost of the reckless behavior.

Moral hazard takes several forms like the examples of : polluting waters with chemicals, throwing refuse into drainage, mismanagement of public amenities.

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All of the following factors would be signs of an investor's significant influence over an investee except the common stock held
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4 years ago
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