Multiple Choice
Which of the following is an example of moral hazard?
A) Mario opens a smoothie shop rather than a hamburger joint because he only wants to offer vegan options at his establishment.
B) Jenesse buys a bigger size coat than she needs so that she can still wear it if she gains weight in the future.
C) Arturo buys life insurance as he wants to make sure his family will be provided for, even though he is healthy and takes care of himself.
D) Jane builds her home on a piece of property with a great view but that is at high risk for flooding because she can get flood insurance on the low-lying land.
Correct Answer:
Verified
Correct Answer:
Verified
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