An Example of Moral Hazard Is

Multiple Choice

An example of moral hazard is

A) a situation where high-quality loan applicants drive low-quality loan applicants out of the market for bank loans.
B) a situation where equally qualified men and women do not earn the same wages in the same occupation.
C) a situation where individuals are not willing to pay top dollar for a used car because they assume it is a lemon.
D) a situation where a person purchases life insurance and then lives recklessly.