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Bezzdna [24]
3 years ago
15

________ is the phenomenon when one party that is protected from risk behaves differently than if it were fully exposed to the r

isk.
Social Studies
1 answer:
expeople1 [14]3 years ago
3 0
<span>Moral hazard is the phenomenon when one party that is protected from risk behaves differently than if it were fully exposed to the risk.
</span> It is a situation in which one party has an incentive to take risks that others will pay for.<span>Moral hazard is usually applied to the insurance industry.
</span>However, the term is used also in business denoting t<span>he idea of a corporation being </span><span>too big to fail.</span>
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