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Which one of the following represents the problem of moral hazard?
The increased incidence of cancer in the area surrounding a factory that disposes of toxic chemicals in a local river.
The satisfaction gained by people who live near an outdoor amphitheater from listening to concerts without attending.
The income sacrificed while attending college.
The decision of a woman who develops diabetes to get health insurance.
The choice of banks to make riskier loans after the FDIC begins to insure their deposits.