Limited access

Upgrade to access all content for this subject

Which of the following best illustrates the market failure known as moral hazard?


A person who has airbags in her car begins to drive more cautiously because she fears having the airbags deploy.


After obtaining an extended warranty for his phone, a student decides he no longer needs to keep it in its protective case.


A worker fails to wear her safety glasses when operating machinery even though she knows she can be fired for this.


People eat healthier foods in order to keep their health insurance premiums lower.


A homeowner continues to burn leaves in his yard even though it prevents his neighbors from being able to enjoy outdoor activities.

Select an assignment template