Multiple Choice
The basic idea behind moral hazard is that ________.
A) some economic transactions impose an additional cost on society
B) some economic transactions give rise to an additional benefit to society
C) people tend to take more risks if they do not have to bear the costs of their behavior
D) people do not reveal their true preference for goods that are non-excludable in consumption
Correct Answer:
Verified
Correct Answer:
Verified
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