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 report it in the comments below.

Be the first to comment if anything wrong with this mcq
Your comment successfully submitted!
It will automatically posted after review and approval by our staff member.