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Which of the Following Describes Moral Hazard

Question 44

Multiple Choice

Which of the following describes moral hazard?


A) Following the signing of a contract there is an increased likelihood that one party will engage in problematic behaviour.
B) High risk individuals are less attracted to certain types of contract.
C) High risk individuals are more attracted to certain types of contract.
D) Prior to the signing of a contract there is an increased likelihood that one party will engage in problematic behaviour.

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