Which of the Following Is an Example of Moral Hazard

Multiple Choice

Which of the following is an example of moral hazard?

A) When a family's belongings are protected against theft and they take special care to look after the house.
B) An individual buys a new auto insurance policy which includes a special payment if the car skids on the ice and the person then begins driving recklessly on ice.
C) When a country expects assistance in the event of a currency crisis and therefore takes special care to avoid such a crisis.
D) When decision-makers expect special assistance in the event of an unfavorable outcome and their behavior changes in such a way to avoid that outcome entirely.
E) When a person with health insurance takes great care not to catch a serious cold.