Which of the following best demonstrates the problem of moral hazard ?

A. Fatima chooses to attend a well-respected college

B. Josephine doesnt buy health insurance because it is too expensive, and she is healthy

C. Enzo drives more recklessly after he buys car insurance

D. A life insurance company forces Enzo to have a medical examination prior to selling him insurance

Found an error? Read our corrections policy and submit a sourced correction below. You can also share a useful explanation in your own words.

Discuss the answer or suggest a sourced correction
Thank you for contributing.
Your comment was submitted and will appear after editorial review.

Your email is used only for moderation and is never displayed. Spam, copied material and fabricated endorsements are rejected.